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Income tax query

manik (ca in practice) (420 Points)

15 June 2011

our concern has purchased waterproofing tarpaulin to protect stock for rs.21,00,000.my question is whether it will be treated a consumable item of revenue expenditure or capital asset considering it as capital expenditure.pls advice

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4 Replies

U S Sharma (glidor@gmail.com) (21063 Points)
Replied 15 June 2011

consumables

as tarpauline is not a part of plant and machinery, and it get damages faster, also does not find resale value of damaged tarpauline, so its revenue expenditure, but in case of stock at end of year, u can keep "consumable stores value for unused portion" in balance sheet assets

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valji (Accounts manager-MBA) (2150 Points)
Replied 15 June 2011

i am agree with mr sharma tarpauline is not a capital items so it trerate as revenue exp debited to profit & loss accounts

Mandar (Senior Acountant) (47 Points)
Replied 15 June 2011

Can any1 plz tel me what is taxabilty in case of mutual fund which is counted as units and we also took ded'n U/S 80-C, eg. i am investing Rs.10000/- per month in Max New York Life Insurance and for tht i am getting accumlated Units for each premium. So on maturity what abt taxabiltiy 1)if i shown in Assets 2) if i debited to cap a/c every year. And tell me whether it is fully exepmt from tax?????? plz rly soon.........

Abhay Jain (Internal Auditor) (43 Points)
Replied 09 August 2011

A Pharma Company Makes the payment to doctors in name of Academic Aid . Is any TDS libility arsies on this ?Is any Case Law ? Is this type expenditure allowable undre Income Tax and if Yes under Which section. As an Auditor under tax Audit or in company Audit what Remarks/Observation to be given.