Borrowing cost

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Querist : Anonymous

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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.

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

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Querist : Anonymous

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Querist : Anonymous (Querist)
16 January 2014 But my building ready made... not in costruction


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

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Querist : Anonymous

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Querist : Anonymous (Querist)
16 January 2014 Thanks Punkaj..God bless You my boy



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