Valuation of loose tools & spare parts
This query is : Resolved
Querist : Anonymous
Querist :
Anonymous
(Querist)
20 May 2010
How the valuation of loose tools as well as spare parts of machinery can be done?
20 May 2010
Spares and tools which is not part of any particular Fixed assets, you can value as Inventory as per AS-2 and charge off in P&L a/c based on consumption
Message likes :
1 times
20 May 2010
If the loose tools and spares is of regular use i.e. the spares are required on frequent basis just like moulds and dies which become obsolete or broke down after using sometime, it should be considered as inventory and valued at cost or market value whichever is lower and charge off it on the basis of consumption.
If these are not of regular use or use at unfrequent basis, it should be capitalised and treated as part of fixed assets. And accordingly it should be depreciated.
If these are not of regular use or use at unfrequent basis, it should be capitalised and treated as part of fixed assets. And accordingly it should be depreciated.
Message likes :
2 times
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
- Is this income indian or foreign income?
- ITC temporary reversal and reclaim
- GST on export of services and Input Credit
- RCM applicability on Rent Paid by Registered Person to Unregistered Landlord for Residental Building
- Inventory of finished goods
- Applicable TDS rate for sale of property in Nov 2024
- Confusion around Form 26QB fields
- GST ON EXPORT COMMISSION
- RCM INVOICING FROM NOV-2024
- Tds on building rent monthly
- Disallowance of Section 43B(h) to sez units
- Regarding Waiver of Interest levied u/s 50 of PGST/CGST Act
- LAST YEAR 2022-23 ITC IN NEXT YEAR 2023-24 REPORITNG IN GSTR-9
- MIS MATCH OF INVOICE NUMBER
- IGST Credit-Show cause notice issued-confusion
- Issue of gst e invoice
- 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
Trending Online Classes
CAclubindia
