Trail run cost after commencement of production

This query is : Open

Querist : Anonymous

Querist : Anonymous (Querist)

21 January 2010 My querry is relating capitalisation of cost inccured after the date which is declared as date of commercial production.

But the concerned company is saying even they declared date of production as 1-4-2009, they actually started producing commercially feasible quantity from 1-10-2009 only, and they are capitalising cost upto 1-10-2009.

Is it the right treatment?
Will it be allowable in tax consideration?

Querist : Anonymous

Querist : Anonymous (Querist)

23 March 2010 can any one answer the above question quickly?