capitalisation of exp
This query is : Resolved
06 August 2008
the exchange rate differece relating to foreign currency liability incurred in relation to fixed assets.
1.what is the treatment of above transaction as per co.act
2.wat is its treatment as per IT act.is it an allowable exp.
1.what is the treatment of above transaction as per co.act
2.wat is its treatment as per IT act.is it an allowable exp.
GIRISH KUMAR MITTAL
(Expert)
06 August 2008
As per companies act,1956 if there is an increase/decrease in the amount of loan taken for the purpose of acquisition of fixed assets due to exchange rate fluctuation , then the cost of the fixed asset will be increased/decreased also by the same amount and this new increased value will be considered as cost of acquisition.
As per income tax act i have no idea.
As per income tax act i have no idea.
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