capital or revenue
This query is : Resolved
21 June 2008
A school building which is 20 years old replaces all its corroded mild steel windows to aluminium sliding windows of better quality and easier to operate than the old windows.whether this expenditure should be charged to capital or revenue?
21 June 2008
it is not resulting in improvemnt or extension....
It is part of establishment charges....upkeep...etc.. it is a revenue expenditure.
Pc
profvpp@gmail.com
www.bharadwajinstitute.com
it is not resulting in improvemnt or extension....
It is part of establishment charges....upkeep...etc.. it is a revenue expenditure.
Pc
profvpp@gmail.com
www.bharadwajinstitute.com
23 June 2008
Sir,
the windows are of better quality than the earlier windows and also facilitate easier operation. whether this translates to extention in capacity?
Deepak
the windows are of better quality than the earlier windows and also facilitate easier operation. whether this translates to extention in capacity?
Deepak
CA. Yayati Tyagi
(Expert)
26 June 2008
still revenue, why r u insisting on capital?
26 June 2008
If it is heavy expenditure. So it will be written off in comming years. So it is capital expenditure. But if this is not big amount and can be writtn off in single financial year then it will be treated as revanue expenditure
CA. Yayati Tyagi
(Expert)
27 June 2008
sorry but a big NO. nature of exp. never depend on amount involved. it always decides on the basis of what differnce exp. has made to normal working of a plant/machine or company.
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