In my one manufacturing unit,which is situated out of the city area I have incurred about Rs. 08.00 Lacs for fencing a electircity line from city to the unit.
What I shoud do I treat this a capital Expenditure and capitalise in Electric installation r treated as deferred revenue expenditure and w/oo in 5 installment.
This is new Industry and estalished in April 2008.
15 September 2009
My advice would be to capitalize it as the installation cost of the asset- electric installation, as the fencing will remain productive for more than 5 years.
CAclubindia
