HI,
whether interest paid on loan taken for "purchase of land",
which is held as "stock in trade" will be capitalized to the value of stock or not?
mansi r sharma (student) (67 Points)
07 August 2014HI,
whether interest paid on loan taken for "purchase of land",
which is held as "stock in trade" will be capitalized to the value of stock or not?
Stranger
(.)
(5526 Points)
Replied 07 August 2014
No, only in case of qualifying asset which takes substantial period of time to gets itself ready for it's intended use, the interest during this period is capitalised as per AS-16. So in ur case interest will be treated as revenue expenditure which can be claimed from business income & cannot be added to stock valuation as inventories (stock-in-trade) is not a qualifying asset at all.
GSTR 9 and 9C for FY 23-24 as amended by Notification 12/2024 dated 10th July 2024(with recording)
CAclubindia
