accounting for repairs
This query is : Resolved
17 November 2008
Dear
Can anybody guide me that how accounting treatment to happen in this case :
A company has taken an office on rent. In one year it spends approx 12 Lac for repairs or renovation (such as flooring, AC ducting & Glass fittings etc non removable)of the office premises taken on rent.
As this is rented property, shall this comapny book the expenditure on repairs/ renovation as Capital assets or revenue expense for Income tax purposes.
Please clarify and if possible give certain judgements from case laws.
Can anybody guide me that how accounting treatment to happen in this case :
A company has taken an office on rent. In one year it spends approx 12 Lac for repairs or renovation (such as flooring, AC ducting & Glass fittings etc non removable)of the office premises taken on rent.
As this is rented property, shall this comapny book the expenditure on repairs/ renovation as Capital assets or revenue expense for Income tax purposes.
Please clarify and if possible give certain judgements from case laws.
17 November 2008
The said expenditure can be capitalized and depreciation can be claimed u/s 32.
17 November 2008
Continuing on the issue it is clear in explanation 1 to section 32(1) of the incometax act,1961. Thus no need to search for case laws.
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
- Manual Rectification through AO
- IT Return filed defective u/s 139 (9)
- Defective Return - Tds on advance
- Fixed Deposit Claim Relinquishment by the Nominee
- TCS ON SOFTWARE SALES
- Income Type for interest from government bonds
- TDS RATE ON RENT PAID TO NRI
- Not a CA , can we prepare balance sheet
- Tax treatment of debt mutual funds
- SHARE TRANSFER PRIVATE LIMITED COMPANY
- Issue of gst e invoice
- Gstr 9 2023-24
- 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
- GST RCM not shown in GSTR-3B
- Bill from Dispatched from issue.
Trending Online Classes
-
Landmark Judgments: Important Provisions of the EPF & ESI Act interpreted by the Honorable Supreme Court of India
Mr.Balamurugan Ranganathan15 November 2024
CAclubindia
