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Capitalization of expence on New Car
If i pay 15000 Demand Draft to RTO for Number Plat of new car is this expence is capitalized or not?
Replies (12)
Is this paid legally...?
yes sir
Yes...... to be capitalized.
Nottobecapitalizedasitdoesnotincresethecapacitynorincreasetheefficiencyofthecar,shouldbedebitedtop/la/creferAS10
Yeah...
If it's legally then you can Capitalize the amount...
If it's legally then you can Capitalize the amount...
but aamir sir expence of car number plat is not recurring expence
sorry, it is to be capitalized, registration charges will include in the value of purchase of new asset.
Should be capitalised without any doubt, (all expenses incurred to make asset ready to use, should be capitalised )
as in any capital asset any expenses incurred for stamps or other improvement has to be booked as capital expenses and in no case as revenue expenditure .
Any expenditure which are supposed to be incurred on assets to make it put to use is a capital expenditure and supposed to be capitalized. In your case you have incurred Rs.15000/ for obtaining number plate form transport authority, Sir, without number of a vechile you can not run it on public road. Hence it is a expenditure which has been incurred for an assest to make it useable so it is a capital expenditure,
payment through DD illegal ?
| Originally posted by : Sanjeev Arora | ||
 |
payment through DD illegal ? |  |
As per query If it's to particular dept then NO....
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