advanced accounting
This query is : Resolved
04 February 2009
hello sir/madam,
may i know that if we trasfer one heavy macinery already installed(a capital item)from one location to another location in the same factory premises, and a sum of rs 5 lacs is incurred for this trasfer , then whether this sum would be treated as revenue expense or a capital expense?
may i know that if we trasfer one heavy macinery already installed(a capital item)from one location to another location in the same factory premises, and a sum of rs 5 lacs is incurred for this trasfer , then whether this sum would be treated as revenue expense or a capital expense?
04 February 2009
it will be treated as revenue expenditure since it will not increase the life of the machinery as per as-10 fixed assets
if it increase the life of machine it can be treated as capital expenditure as per as-10
rds
cavipingarg
partner
KVR&CO
B-2/1,Ashish Complex,LSC
New Rajdhani Enclave,
Vikas Marg,Delhi-110092
kvrco@in.com
Tax,Assurance,Consultancy,ROC/STPI
if it increase the life of machine it can be treated as capital expenditure as per as-10
rds
cavipingarg
partner
KVR&CO
B-2/1,Ashish Complex,LSC
New Rajdhani Enclave,
Vikas Marg,Delhi-110092
kvrco@in.com
Tax,Assurance,Consultancy,ROC/STPI
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
- Query reg: Accounting standard, Indian Accounting Standard, IFRS, GAAP, Cost Audit, Frontend audit
- GST Refund SB005 Error
- PAYMENT TO OPEN AI AND ENVATO ELEMENT
- 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
Trending Online Classes
-
Excel Mastery Program
CA Rishabh Pugalia
CAclubindia
