13 June 2013
expenditure incurred in replacing petrol engines fitted in jeeps with diesel engines in view of the old and defective condition of the existing engines and the price variation in petrol as compared to diesel... is it a capital expenditure or a revenue expenditure?
13 June 2013
The said expenditure is capex because engine is the main component of jeep. Replacement of engine with diesel version will improve the mileage & also enhanced the useful life of the jeep.
CAclubindia
