Suvendu Laha (CA SERVICE AT TULSYAN GROUP OF INDUSTRIES) (106 Points)
29 January 2011Dear all,
Company incurred Travelling expenses(foreign) for inspection of machine to be purchased. Plz advice me wheather this cost to be capitalised or not.?
Regards,
Suvendu
sivaram
(Asst Mgr-Taxation)
(6918 Points)
Replied 29 January 2011
All Direct Expenses incurred in connection with Bringing of machinery which includes Inspection and Testing charges .so this expenditure on travel for Inspection charges can be capitalised
Suvendu Laha
(CA SERVICE AT TULSYAN GROUP OF INDUSTRIES)
(106 Points)
Replied 29 January 2011
What would be if the expenses is incurred before purchase..?
sivaram
(Asst Mgr-Taxation)
(6918 Points)
Replied 29 January 2011
I dont find there will be any change in the treatment
Tehsinkhan Pathan
(CA CMA DISA(ICAI) B.COM)
(3956 Points)
Replied 29 January 2011
Agree with the Sivaram.......................
Suvendu Laha
(CA SERVICE AT TULSYAN GROUP OF INDUSTRIES)
(106 Points)
Replied 29 January 2011
I also think so. As-10 state that
"The cost of an item of fixed asset comprises its
purchase price, including import duties and other non-refundable taxes or levies and any directly
attributable cost of bringing the asset to its working condition for its intended use" but my internal auditor argue with me.
Any further clarification about the matter..?
sivaram
(Asst Mgr-Taxation)
(6918 Points)
Replied 29 January 2011
| Originally posted by : Suvendu Laha | ||
 |
I also think so. As-10 state that "The cost of an item of fixed asset comprises its purchase price, including import duties and other non-refundable taxes or levies and any directly attributable cost of bringing the asset to its working condition for its intended use" but my internal auditor argue with me. Any further clarification about the matter..? |
 |
You are right in your arguments
CAclubindia
