Entry tax

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

18 December 2014 Dear Professionals,

We are the contractors. we use the machineries regularly on which we have paid entrytax. such entry tax treated as capital expenduture? or revenue expenduture? please clarrify

P V Ram

P V Ram (Expert)
Follow

18 December 2014 As per AS 10, all expenditure incurred to put the asset to use is to be capitalised. So entry tax paid to bring the asset to the place of its use is to be capitalised.

Thanks!