Pulkit Agarwal
(CA. Final)
(455 Points)
Replied 18 September 2009
| Originally posted by :HARSH GOENKA | ||
| " | I AGREE WITH Mr. HEMAL & Mr. KAUSTAV EXPENDITURE ON BATTERY IS OF REVENUE NATURE IT DOESNOT ENHANCES ITS CAPACITY MOREOVER WHAT IF THE BATTERY SINKS? THEREFORE IT IS OF REVENUE NATURE |
" |
Haresh,
The test for revenue is not what has actually happened to your last battery. it is definetely capital expenditure.
CA. SUDHARSAN K G
(Chartered Accountant)
(472 Points)
Replied 19 September 2009
Hai.,
Replacement of Battery wont increase the efficiency of the Asset but it will keep the asset at normal condition. Although you may have arguments to capitalise it will be good and wise to treat it as Revenue Expenditure.
Analysis of 20 GST Notices (including 2 Appeals) and Practise on Drafting(with recording)
GSTR 9 and 9C for FY 23-24 as amended by Notification 12/2024 dated 10th July 2024(with recording)
CAclubindia
