12 July 2012
'A' Pvt. Ltd. has taken land on lease from its sister concern 'B' Pvt. Ltd.with 10years lease period for monthly lease payment of Rs.19000, on which 'A' has constructed a Building for its factory use.Whether this Building is to be treated as Leasehold Improvement?If no what should be the proper treatment?Kindly reply
12 July 2012
Building construction is a capital cost.. hence to be treated as fixed assets on which dep. needs to be charged.... building also be shown under
CAclubindia
