Pushpa Vathi (8 Points)
16 November 2021Hi,
We had received demand note from BBMP for Addition & Alteration of Building approval for the old license.
My question is whether these charges should be accounted as addition to building as fixed asset or should it expensed out as rates & taxes. Please help.
Thanks in Advance
Pushpa
Dhirajlal Rambhia
(SEO Sai Gr. Hosp.)
(181046 Points)
Replied 16 November 2021
Generally such expenses are accounted as revenue expenditures.
Rama chary Rachakonda
(Master in Accounts & Lawyer email ID:ramachary64@gmail.com voice no:9989324294)
(5713 Points)
Replied 16 November 2021
It is purely revenue expenses. Revenue expenditures are short-term expenses used in the current period or typically within one year. Revenue expenditures include the expenses required to meet the ongoing operational costs of running a business, and thus are essentially the same as operating expenses (OPEX).
25 Hours GST Scrutiny of Return and Notice Handling(With Recording)
Survey, Search and Seizure under Income Tax Act 1961
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