Dear Friends,
CAPITALISATION OF FIRST INSURANCE ON TRAILOR PURCHASE
neeraj (Assistant accounts manager) (68 Points)
17 August 2010
3 Replies
CA Manoj Kumar Rai
(Practitioner)
(46 Points)
Replied 17 August 2010
Yes, first insurance paid for assets shall be capitalised.
As per AS 10 the cost of an itemof fixed asset comprises its purchase price, including
import duties and other non-refundable taxes or levies and any directly
attributable cost of bringing the asset to itsworking condition for its intended
use; any trade discounts and rebates are deducted in arriving at the purchase
price.
Here key word is cost incurred the asset to itsworking condition for its intended use.
Ratti Wahal
(Company Secretary)
(139 Points)
Replied 18 August 2010
Dear Mr. Niraj,
I agreed with the opinion of Mr. Manoj.
In my opinion too, the first insurance charges as well as the Road Tax paid for purchasing new trailor vehicle shall be capitalized.
Regards
CA HARISH KUMAR
(ACA, B.Com(Hons.))
(80 Points)
Replied 20 August 2010
i am also agree with Manoj and Ratti.
Recent Topics
- Form 3CEAB
- Form 3CEAA and Form 3CEAB
- DIR 3 Web KYC
- Can i declare LTCG income as business income if I
- Stock entry in new software
- I have an EMI collection shop, what is its SAC cod
- Making payment once in quarter possible under QRMP
- Master File Documentation related
- Applicability of 44AD needs clarification
- ITC reversal in GST 3B
Related Threads
CAclubindia
