04 February 2008
Dear all "Expenditure incurred on construction of additional floor on rented premise" how do i account this expenditure in the books of account?
04 February 2008
Dear sir Rental term says what ever the expenditure incurred to this building it can not be claim from the owner or cannot be adjusted from the rent. Why i should not construct with my own risk?
05 February 2008
If as a lessee you costruct a floor without that being permissible or under the terms of lease, it becomes a costruction cost at your risk. You can account it in any manner you like if it is the 'account' of an individual.
This will not, however, qualify as expenditure to be claimed in your tax reurn, against income from any source.
If you are a company, then in addition to the disallowance of claim as expenditure in tax return, you will also have to write it off as intangible item if the lease doesn't permit you and therefore enduring benefit is not there
26 February 2008
It can be claimed as expenditure assuming that premises is used for business. Onus is on you to prove that additional floor is for business baneficial.
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