Accounting treatment & wct

This query is : Open

Querist : Anonymous

Querist : Anonymous (Querist)

03 June 2015 Hi Expert,

In a company expenses are incurred for additional floors on top of the present structure.

The completion would take nearly 3 years.

Amounts are paid to contractors run into several lakhs as on 31.03.2015

In FA Register there is a group "Construction -WIP".

My question is
1) How to present the expenditure incurred until now in the Balance Sheet?

2) Can depreciation be claimed on the above expenditure?

3) WCT paid during the FY 2014-15 should be recorded in the books or should be deferred till the completion of the construction.

thanks.

CA. SHIVA SHANKARA R. SHETTY

CA. SHIVA SHANKARA R. SHETTY (Expert)
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05 June 2015 1. The total exp incurred up to 31st March shall be shown under Capital wip.

2. No depreciation is allowed on capital wip. Because, depreciation is allowed only after 'put to use' date.

3. What is WCT?

Querist : Anonymous

Querist : Anonymous (Querist)

06 June 2015 Many thanks.

By WCT I meant works contract tax.
Please ans my question no.3.

WCT, in my question, is related to the ongoing construction work.

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CA. SHIVA SHANKARA R. SHETTY

CA. SHIVA SHANKARA R. SHETTY (Expert)
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07 June 2015 Q.3: You should defer till the completion

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Querist : Anonymous

Querist : Anonymous (Querist)

07 July 2015 Have you heard of Budgeting in a company?

Well I was wondering if you could suggest some institute or coach who teaches Financial/Corporate Budgeting on a professional basis.