Fixed Assets
This query is : Resolved
19 September 2010
Hi, I am facing an issue in capitalisation of the assets, my company has recently build up a new campus and now we are capitalising the assets.
There are a number of doors which are put in place, Can we capitalise all these doors as one asset as they have the same functionality, Does any statement in companies act or taxation stops us from doing that.
Please help me .....
There are a number of doors which are put in place, Can we capitalise all these doors as one asset as they have the same functionality, Does any statement in companies act or taxation stops us from doing that.
Please help me .....
19 September 2010
Hi
CAPITALISATION OF ASSETS :
Once a company starts building up fixed assets , it will have b fixed assets in progress , every year whatever amount has been deployed in building assets hav 2 b capitalised at the year end , say labour , material etc individual ledger a/c's will b opened , & at the year end these a/c's will b transfered to asset a/c , so in ur case number of doors put in place which are part of fixed assets , hav 2 b capitalised at year end . & also go thru sec 43(6) of Income tax Act.& no statement in I.T. & CO'S ACT STOPS CAPITALISATION , BUT DEPRECIATION CAB B CLAIMED ONLY WHEN ASSET IS READY FOR USE.
CAPITALISATION OF ASSETS :
Once a company starts building up fixed assets , it will have b fixed assets in progress , every year whatever amount has been deployed in building assets hav 2 b capitalised at the year end , say labour , material etc individual ledger a/c's will b opened , & at the year end these a/c's will b transfered to asset a/c , so in ur case number of doors put in place which are part of fixed assets , hav 2 b capitalised at year end . & also go thru sec 43(6) of Income tax Act.& no statement in I.T. & CO'S ACT STOPS CAPITALISATION , BUT DEPRECIATION CAB B CLAIMED ONLY WHEN ASSET IS READY FOR USE.
20 September 2010
The building has already been put to use, My question is that whether we can combine all these doors and capitalise them as one asset or not?
20 September 2010
yes
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