Defenition...?
This query is : Resolved
23 April 2009
Dear All,
i want to know about the defination capital and input breifly.
Thanks
i want to know about the defination capital and input breifly.
Thanks
23 April 2009
Please make your Q clear. I guess you are asking about "Capital Input"!!!
23 April 2009
??
23 April 2009
give some clarity in the question ashish
24 April 2009
From which subject you need query??
30 April 2009
Thanks.
my quiry is that, it is not clear that how to define the input item which is use in plant side area(i am working with ambuja cement)and here plant project is continue. and machinery and all item r puchase. so for accounting purpuse i am unable to understan how to define input item or capital item..
my quiry is that, it is not clear that how to define the input item which is use in plant side area(i am working with ambuja cement)and here plant project is continue. and machinery and all item r puchase. so for accounting purpuse i am unable to understan how to define input item or capital item..
01 May 2009
Dear Ashish,
An imput is somthing which is used as intermediate for the final output. For example raw material is an imput for the final product. Any expenditure the usefulness of which last for a longer period then the year in which it expenditure has been incurred is capital in nature. The example of such expenditure are purchase of machinery, plant, computers, furniture, fixtures, etc. These are called fixed assets or capital assets.
As per AS - 10 on fixed assets accounting any cost which is incurred to bring the machinery or any capital assets to a working conditions, should form part of the plant and machinery or capital assets. Accordingly the all expenditure whether foundations freight, salaries, travel expenditure labour charges technical fees etc. paid to bring the machine / capital asset in working condition forms part of the plant and machinery / capital asset eligible for deprecation at the rate applicable to plant and machinery as per Companies Act. This applies the Income tax act depreciation as well. So find out all the expenditure incurred connected directly to being the capital assets in to existence / working condition and capitalise the same capital assets. Please note that any CENVAT claimed against the plant and machinery needs to be reduced from the cost or any subsidy received should also be reduced from the cost of the asset. For further clarification, please let me know.
An imput is somthing which is used as intermediate for the final output. For example raw material is an imput for the final product. Any expenditure the usefulness of which last for a longer period then the year in which it expenditure has been incurred is capital in nature. The example of such expenditure are purchase of machinery, plant, computers, furniture, fixtures, etc. These are called fixed assets or capital assets.
As per AS - 10 on fixed assets accounting any cost which is incurred to bring the machinery or any capital assets to a working conditions, should form part of the plant and machinery or capital assets. Accordingly the all expenditure whether foundations freight, salaries, travel expenditure labour charges technical fees etc. paid to bring the machine / capital asset in working condition forms part of the plant and machinery / capital asset eligible for deprecation at the rate applicable to plant and machinery as per Companies Act. This applies the Income tax act depreciation as well. So find out all the expenditure incurred connected directly to being the capital assets in to existence / working condition and capitalise the same capital assets. Please note that any CENVAT claimed against the plant and machinery needs to be reduced from the cost or any subsidy received should also be reduced from the cost of the asset. For further clarification, please let me know.
03 May 2009
thank you rajesh ji.
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