11 August 2011
Insurance of Car if is pertains to 1 year period, it can be debited and claimed as an expense. Annual Insurance premium ca be debited on due basis.
From my Knowledge, i dont think there is a case which intends the same, however if there is any i would presume that its bad in LAW, as its against the principles of CAPITAL V/s REVENUE understanding....!!
Regards CA. Lohith. J B.Com,ACA,CS,(ICWA),SAPM Hons,ITF Hons
12 August 2011
WHEN INSURANCE PREMIUM IS A RECURRING EXP. LIKE PETROL AND OTHER MAINTENANCE EXP. THE WHY SHOULD IT CAPITALIZED. FROM THE DATE OF CAR PURCHASE.
The view expressed does not pertain to Regular Insurance Premiums paid which can be claimed as regular expenditure, But i guess you should have worded ur question better.
You had asked for " Insurance Premium on new car purchase "
Regards CA. Lohith. J B.Com,ACA,CS,(ICWA),SAPM Hons,ITF Hons
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