Consent to operate
SANKET HOLAM (33 Points)
23 June 2023consent to operate it is capital expenditure or revenue expenditure.
this is one type of permission given by the govt department to start new plant.
SANKET HOLAM (33 Points)
23 June 2023
Dhirajlal Rambhia
(SEO Sai Gr. Hosp.)
(178001 Points)
Replied 23 June 2023
If the permission is given on permanent basis, it can be treated as goodwill, otherwise revenue expenditure.
SANKET HOLAM
(33 Points)
Replied 23 June 2023
Dhirajlal Rambhia
(SEO Sai Gr. Hosp.)
(178001 Points)
Replied 23 June 2023
Consider it as revenue expense (P & L item), but apportioned cost; divided by five years of usage.
So, the remaining part will get reflected in BS.