does renovation cost are capital expenditure ??
Does renovation cost are capital expenditure ??
Ks (Ac) (138 Points)
13 June 2022
prasad Nilugal
( GST Practitioner & Accounts )
(14606 Points)
Replied 13 June 2022
CA Rashmi Gandhi
(Chartered Accountant)
(86308 Points)
Replied 13 June 2022
prasad Nilugal
( GST Practitioner & Accounts )
(14606 Points)
Replied 13 June 2022
CA Rashmi Gandhi
(Chartered Accountant)
(86308 Points)
Replied 13 June 2022
prasad Nilugal
( GST Practitioner & Accounts )
(14606 Points)
Replied 13 June 2022
CA Rashmi Gandhi
(Chartered Accountant)
(86308 Points)
Replied 13 June 2022
As per AS 10, the cost of property, plant and equipment of a business entity may include the:
prasad Nilugal
( GST Practitioner & Accounts )
(14606 Points)
Replied 13 June 2022
Some of the Case law .
1) Expenses for Renovation and Redecoration of Hotel Rooms , Constitute Revenue Expenditure - Honorable Madras High- Court in case of Pandian Hotels .
2) Repair or Renovation expenditure on Make up rooms is revenue expenditure , Maharashtra Film culture Development Corporation Vs JCIT - Honorable High court judgement
some more case laws wherein honorable court has decided as Renovation expenditure is Revenue in nature .
prasad Nilugal
( GST Practitioner & Accounts )
(14606 Points)
Replied 13 June 2022
In my opinion , Renovation Expenditure may be Capital Expenditure , however in Certain cases it may not if you refer above case laws .
CA Rashmi Gandhi
(Chartered Accountant)
(86308 Points)
Replied 13 June 2022
prasad Nilugal
( GST Practitioner & Accounts )
(14606 Points)
Replied 13 June 2022
Respected Madam , but in query it is not clear for what purpose they have incurred Renovation Expenditure .
CA Rashmi Gandhi
(Chartered Accountant)
(86308 Points)
Replied 13 June 2022
CA Rashmi Gandhi
(Chartered Accountant)
(86308 Points)
Replied 13 June 2022
sabyasachi mukherjee
(27278 Points)
Replied 14 June 2022
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