Accounting treatment of works contract exp

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CA Deven (Querist)
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13 January 2014 Can any one guide me regarding the accounting treatment of works contract.

Actually we have done the interior work in our office last week worth RS. 7,00,000/-.

kindly tell me should I need to charge as a fixed assets or as a revenue exp. as a repairs and maintenance.
If as a FA under which head.

CA SHYAM LAL SHARMA

CA SHYAM LAL SHARMA (Expert)
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14 January 2014 I think you have to capitalize the amount of Rs 7,00,000 as a capital assets. If you have made expenditure relating to plant and machinery then you have to capitalise under the relevant head. You can also claim depreciation @ 15.00 %. However, if the expenditure are related to furniture and fixture, then your capital expenditure shall be under that relevant head.

CA Deven

CA Deven (Querist)
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14 January 2014 It is Interior Decoration work...Under which head ?????????

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