Rudrayani Shedjale (Assistant Accountant) (751 Points)
24 August 2013Hello
we have done some interior work which i have capitalised under Furniture & Fixtures.
in tha invoice material around 45000 & labour chrges around 30000(tds deduced on that)
can we capitalise the entire amt to asset or only the material amt to be taken under assets?
pls guide
Ritzz
(CA Final - Article )
(365 Points)
Replied 24 August 2013
Hi
Yes you can capitalise the interior expenses. Since the interior work plus the labour charges, both being incidental to the work done can be capitalised.
Also, make cash vouchers below Rs. 20000 and claim under different dates so as not to attract disallowance under Section 40A (3).
It is also advisable to wait and see what the experts have to say a about this matter.
Regards
Sandeep Garg
(Manager)
(26 Points)
Replied 24 August 2013
An asset takes both material an labor cost to build. So both will be capitalised.
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