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Querist : Anonymous

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Querist : Anonymous (Querist)
05 April 2014 suppose in a new co.for machine installation foreigners came for setting the machine and they stay in hotel so hotel expenses are capitalise or not ? one thing it is a new company.


05 April 2014 Hotel expenses would be capitalized.
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The Concept :
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If the installation of the machinery was not required; the expenditure was also not required to incur.
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It means the expenditure is related to the machinery....not to run the business...hence it is a capital expenditure.

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Querist : Anonymous

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Querist : Anonymous (Querist)
05 April 2014 ok sir but if some one is appointing for whole co as a observer then what is the treatment for hotel expens?


05 April 2014 The expenses related to supervision are also part of installation of the machinery hence these would also be capitalized.

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Querist : Anonymous

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Querist : Anonymous (Querist)
05 April 2014 ok sir thank u for your guidance



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