Capital work in progress

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Jagadish (Querist)
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17 March 2009 Thanks for reply
This project going to be a sep. legal entity in that case same rules apply?

We have started one project and all expenses related to that project am debiting capital WIP.Now we have purchased a vehicle exclusively using this project. I have doubt whether i accounted as fixed assets or as capital WIP

Kindly clarify the doubt

Thanks in Advance
Jagadish

CA Pattanayak

CA Pattanayak (Expert)
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17 March 2009 Dear Jagadish,

It has to be considered as Fixed Asset.
and not as capital work in progress. As the asset purchased is ready to use. The same u can add to the Project if at later stage vehicle is going to be used exclusively for project after comletion of the same.