Capitalization of New Vehicle
This query is : Resolved
12 May 2009
Hi,
If a company purchases a new vehicle say a car for total cost of Rs 400000 which includes Rs 15000 as 1st yr dep also, then shd the co. capitalize full 400000 in books or it shd capitalize only 390000 and expense off the insurance amt of Rs 10000?
If a company purchases a new vehicle say a car for total cost of Rs 400000 which includes Rs 15000 as 1st yr dep also, then shd the co. capitalize full 400000 in books or it shd capitalize only 390000 and expense off the insurance amt of Rs 10000?
12 May 2009
I am reqwording your query as following
If a company purchases a new vehicle say a car for total cost of Rs 400000 which includes Rs 15000 as 1st yr Insurance also, then shd the co. capitalize full 400000 in books or it shd capitalize only 385000 and expense off the insurance amt of Rs 15000?
The reply is capitalise entire 4Lac as the first year insurance is an expenditure is to being the motor vehical in working condition.
If a company purchases a new vehicle say a car for total cost of Rs 400000 which includes Rs 15000 as 1st yr Insurance also, then shd the co. capitalize full 400000 in books or it shd capitalize only 385000 and expense off the insurance amt of Rs 15000?
The reply is capitalise entire 4Lac as the first year insurance is an expenditure is to being the motor vehical in working condition.
12 May 2009
Normally Initial year Insurance of any vehicles which is necessary for running on thr road, hence insurance needs to capitalised along with the Vehicles
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- REGARDING GST ON COMMERICIAL PROPERTY
- Is this income indian or foreign income?
- 15ca /15cb whose income tax login? remitter or nri seller's login?
- ITC temporary reversal and reclaim
- TDS U/S. 194NF
- GST on export of services and Input Credit
- RCM applicability on Rent Paid by Registered Person to Unregistered Landlord for Residental Building
- Regarding Documentation & Compliances for Opening of Unit of Pvt Ltd.
- Applicable TDS rate for sale of property in Nov 2024
- Can we claim ITC of Feb-2024 in the month of November-2024 which was not claimed by oversight
- MIS MATCH OF INVOICE NUMBER
- VERIFICATION OF REFUND RELATED
- GST Regis.
- ITC c/f from FY2022-23 to FY2023-24 entered the same in table 8C of GSTR9 of FY 2022-23, in FY23-24
- Late filling fees Demand by gst office
- IGST Credit-Show cause notice issued-confusion
- Short and Excess provision of expenses
- Issue of gst e invoice
- Interchangeable words in accounts
- Adjusted profit/Loss in the case of LLP and Pvt. Ltd.company
Trending Online Classes
CAclubindia
