Capital Expenditure Threshold

Valerian Vincent (Director) (21 Points)

24 August 2020  

Hi, 

Currently, we are using the Rs 5,000 rule to capitalize, meaning anything under 5,000 gets expensed to P&L. 

The question I have is, can we as a company say, we only want to capitalize 1 Lakh and above, as for us anything under 1L is immaterial. 

Thanks in advance.