Revenue Exp
This query is : Resolved
02 May 2008
Assessee purchased a new electric motor for supplying raw material to the machine inlieu of rewind of old motor. Rewinding is not possible for many times hence after 2-3 rewinding assessee has replaced it. As per my opinion it is revenue exp whether my contention is right? Please elaborate
03 May 2008
for treating an expenditure as Capital or Revenue the creteria to be followed is whether,
The useful life of the equipment is being extended or not,
If the useful life is extended due to replacement with new motor you can treat it as capital expenditure.
To treat the same as revenue expenditure you may have to interprete that, the useful life of the equipment after replacement of new motor remain unchanged.
The useful life of the equipment is being extended or not,
If the useful life is extended due to replacement with new motor you can treat it as capital expenditure.
To treat the same as revenue expenditure you may have to interprete that, the useful life of the equipment after replacement of new motor remain unchanged.
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- Applicability
- Where to show the RCM on Rent paid to unregistered landlord
- Is Aadhar PAN linking required for opening bank account?
- CPC Processing IT Return for AY 2023-24 without recognizing the Taxation Option under New Regime
- TDS NUMBER SURRENDER
- Gst Sales of FY 2023-24
- Offsetting interest income against derivative trading losses
- Application of 115BAC
- Legal heir raised refund , but refund issued to the closed account of deceased.
- RCM - commercial rent paid to URP under GST
- Whether still royalty
- 20% OF DEMAND PAYMENT IN APPEAL
- Issue of gst e invoice
- Interchangeable words in accounts
- Adjusted profit/Loss in the case of LLP and Pvt. Ltd.company
- How to adjusted advances given or receipt
- Foreign vendor without PAN unable to to register due to non receipt of OTP on foreign number ?
- 133(6) DIN INVALID format error - ->WHERE TO REPLY 133(6) notice?
- Query for dubts
- Regarding Resignation by Auditor from Pvt. Ltd.
Trending Online Classes
-
Excel Mastery Program
CA Rishabh Pugalia
CAclubindia
