05 November 2008
If X a professional visit the plant (under construction) for inspection.He raised Invoice on Y as under
Professional Fees 10000 Conveyance 2000
Service Tax @ 12.36% 1483
Then Conveyance of Rs.2000/- can be capitalised or not as per AS-10 on Fixed Asset issued by ICAI.
Guest
Guest
(Expert)
05 November 2008
any expences incurred inrelation to any asset up to its completion stage has to be capitalised and all expenses incurred up to that stage are the part and parsel of cost of that asset.
here conveyance, if it is incurred in relation to that asset(plant), has to be capitalised including the service tax amount(if it is non refundable).
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