Capitalisation

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

21 June 2010 Dear Experts ,

I am in the finalisation process of an educational institution

. They have debited a lot of expenditures on there building as building and maintainence a/c (Dir Exp) and under some other expense heads. My query is that upto what limit can be treated as expenditure and above what limit should be capitalised ? What is the crieteria for that ?Is it related to amount or nature of expense?If yes what is the criteria Kindly help...

Also please let me know the depreciation rates of Xerox machiene and Water Purifier.

CA Sanjeev Kr Jain

CA Sanjeev Kr Jain (Expert)
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23 June 2010 check the nature of all expenses than debit those to fixed asset OR revenue expenditure

if educational institution is registered in 12A, 12AA, 11 than it would get the deduction of all expenses whether debited to fixed asset OR revenue expenditure

the depreciation rates of Xerox machiene and Water Purifier is 15 %