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Interest on loan treatment

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Guest (Querist)
14 June 2013 can we consider interest charged by bank on loan taken for purchase of asset as addition to assets during the year while preparing depreciation chart.
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CMA Ramesh Krishnan

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CMA Ramesh Krishnan (Expert)
14 June 2013 No. financial charges like interest etc. cannot be capitalised unless it is eligible as Borrowing cost as per AS-16.
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CA Vikas Acharya

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CA Vikas Acharya (Expert)
14 June 2013 also under income tax it can be capitalise upto the date asset is put to use and not after that.
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