Expense - capitalise or write off?

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Nandu (Querist)
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04 January 2012 The client is a software company and has rented a huge commercial property(not lease). It has spent Rs.40lakhs on interiors and furnishing.

Can the expense be capitalised? if so what will the the depriciation rates applicable??

Mahesh Paryani

Mahesh Paryani (Expert)
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04 January 2012 Yes these expenses can be capatilise because the expenses are of enduring nature

Different assets are depreciated at different rates you have to evaluate the life of the asset for determining the depreciation rate.

the assets which are permanently fixed in the leased assets are to be depreciated up to the term of lease period.

Regards