vijaya kumar n (JOB) (488 Points)
12 August 2011Good Afternoon to All,
We purchased a New car, for that we have taken Loan from the Bank and Bank charges some Loan processing Fees and Bank charges etc for sanctioning the loan. My question is can we capitalize that Loan processing charges and Bank charges?????
Awating for your valuable responses...
Regards
Vijaya Kumar N
CA CS CIMA Prakash Somani
(Landmark Group)
(23502 Points)
Replied 12 August 2011
No it can not be capitalized, think otherwise if you would have taken the same on cash then these charges will not have been there to add upto cost hence which otherwise is not allowed to capitalise cannot capitalise indirectly
CAclubindia
