vikram (articled student) (99 Points)
01 March 2012Ours is a constuction company, In one of our transaction, we purchased a new machinary and send it directly to foreign with out put to use in india for lease to foreign company. Weather the transportation charges incurred in shipment to be capitalised or treated as Revenue Expenditure??????.
ACCOUNTANT
(Student)
(559 Points)
Replied 01 March 2012
Treated as revenue expenditure if leasing in included in the primary activities of the company................
To be capitalised if it is a secondary source of income for the company...........
CA Sachin Rastogi
(Audit/IFRS Manager)
(338 Points)
Replied 16 March 2012
Not to be capitalised as the same has not been incurred during the construction phase of the asset. Expenses till the ready for use stages are capitalised. Put to use stage doesnt allow for capitalisation.
shivam gupta
(Student)
(142 Points)
Replied 16 March 2012
As per AS 10 the cost incurred to make the fixed asset ready to use should be capitalised in ur case the machinery was in ready to use before dispatching the same to a foreign country hence the cost incurred on transportation should not be capitalised & transferred to P/l a/c
& also the concept of PUT TO USE is in taxation to calculate depriciation as per income tax
I hope u will understand
GSTR 9 and 9C for FY 23-24 as amended by Notification 12/2024 dated 10th July 2024(with recording)
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