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capital exp

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12 January 2011 sir, what is the meaning of capital expenditure u/s 36(1)?

12 January 2011 Though there is mention of the words "capital expenditure"in section 36(1)(xii), definition is not given therein .In the absence of that, one has to look into the general principles as well as the nature and course of business and the object behind the expenditure to classify whether an item falls under revenue or capital expenditure.

12 January 2011 can u give any example


12 January 2011 general definition is "the expenditure which is not of revenue nature"

12 January 2011 Test of enduring benefit is a criteria to judge whether an expenditure falls under capital or revenue in nature.



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