Borrowing cost

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

15 January 2014 DEAR SIR/MAM, WE (COMPANY) HAVE PURCHASED A FLAT IN MUMBAI FOR WHICH WE HAVE TAKEN A LOAN OF RS. 4 CR. NOW WE ARE PAYING INTEREST ON THE SAME. KINDLY LET ME KNOW HOW SHOULD I TREAT THE ABOVE EXP. ANY AMOUNT DO I NEED TO CAPITALISE OR FULL AMOUNT SHOULD BE EXPENSED OUT.

PANKAJ KUMAR

PANKAJ KUMAR (Expert)
Follow

15 January 2014 if you are using this flat then the interest will be treated as revenue exp. otherwise interest will be capitalise

Querist : Anonymous

Querist : Anonymous (Querist)

16 January 2014 But my building ready made... not in costruction

Upgrade to CAclubindia Pro. Subscribe Now!

PANKAJ KUMAR

PANKAJ KUMAR (Expert)
Follow

16 January 2014 then in that case interest should be treated as revenue expenditure

Querist : Anonymous

Querist : Anonymous (Querist)