Capitalisation of Expenses

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

16 February 2011 Dear experts,

we have imported elevators from china for clearance and other duty we have hired a cargo agency who will clear from custom and deliver the material at our site and we have also paid custom duty directly to custom department.
now kindly advise can we capitalize custom duty and freight and other charges paid to reach the material at our site for use and for production or should we show custom duty paid separately on books. if some one can send me this is in detail and with example.

Regards

SANDEEP AGGARWAL

SANDEEP AGGARWAL (Expert)
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16 February 2011 All the expenses upto the test run will be added in the cost of assets. custom duty can not be booked separately but is to be capitalised with the equipment cost.

Regards,

CA. Sandeep Aggarwal