Capitalization
This query is : Resolved
Meera Madhavan
(Querist)
13 July 2011
Dear friends..
My query is very simple regarding capitalization of certain expenditure. While purchasing a machine, i.e., import of a machinery, do we capitalize the customs duty paid for it?? All the other expenses related to the installation, etc are capitalized but what about the customs duty paid? is it to be treated as an expense or should it be capitalized?
Waiting for a reply...asap..
My query is very simple regarding capitalization of certain expenditure. While purchasing a machine, i.e., import of a machinery, do we capitalize the customs duty paid for it?? All the other expenses related to the installation, etc are capitalized but what about the customs duty paid? is it to be treated as an expense or should it be capitalized?
Waiting for a reply...asap..
CA Navin Jain
(Expert)
13 July 2011
all expenses upto put to use of fixed assets shall be capitalised and custom duty also would be capitalised
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