Replacing batteries of ups - capex or revenue exp?

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Vinay (Querist)
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20 April 2012

Whether repalcement of batts of UPS will be considered as CAPEX or Revenue Exp?

I think it should be considered as CAPEX bcz batts of UPS are an important n not anyother spare part.

Please help me on this.

CA Kishore Tallam

CA Kishore Tallam (Expert)
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20 April 2012 U may see what is the cost of batteries when compared to the total cost of the asset. If other parts of the UPS is considered as main machinery, then batteries cost will be charged off. It depends on circumstances of ur case.

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