If an assessee can purchases Plant & Machinery on Hire Purchase basis whether the interest (for the period before the asset put use) can be added to Cost of Asset to calculate Actual cost of asset.
CA Himanshu Khurana (Chartered Accountant) (813 Points)
12 July 2011If an assessee can purchases Plant & Machinery on Hire Purchase basis whether the interest (for the period before the asset put use) can be added to Cost of Asset to calculate Actual cost of asset.
Vikas
(CA)
(1135 Points)
Replied 12 July 2011
Yes, as per AS 10 the cost relating to the Fixed Asset incurred before it was put to use shall be added to the cost of the asset...
@*CS Siddharth Bumb. *
(B.Com, CA Final, CS )
(5270 Points)
Replied 12 July 2011
YES YOU HAVE TO ADD COST WHICH YOU INCURR..AGREE WITH MR VIKAS
deepa
(CA)
(79 Points)
Replied 12 July 2011
yes the interest before the asset is put to use should be added to the cost of asset.
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