interest on borrowed loan

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Going...to be C.A soon...
1624 Points Joined June 2007

respected all,

if a company borrowed loan for purchasing of a machinery and paid interest for that and interest debited to machinery account still two years back.can company shows that.or if a company borrowed loan for manufacturing of machinery than..........

thanks

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On 03 October 2007 at 10:00 Report
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Chartered Accountant
1974 Points Joined March 2007
if loan is taken for purchasing any machinery then for Income tax purpose interest upto the machinery is put to use shall be debited to machinery account and interest for rest period shall be debited to p/l account
In case of manufacturing of p/m the same provisions shall apply...
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On 03 October 2007 at 10:21
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Consultant
18525 Points Joined March 2007
Further, refer AS 16 "Borrowing cost" - How to treat Interest in the financial statements. It is very much available in our files portal.
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On 03 October 2007 at 11:45
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Going...to be C.A soon...
1624 Points Joined June 2007
please provide notes on AS-16,4 and 5 and tell me which are important AS & AAS
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On 03 October 2007 at 15:36
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Chartered Accountant
1974 Points Joined March 2007
u ll find all AS and AAS in the files section of this site....u r appearing in CA final or inter ....as important AS and AAS are different for inter and final...
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On 04 October 2007 at 19:18
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Chartered Accountant
1974 Points Joined March 2007
u ll find all AS and AAS in the files section of this site....u r appearing in CA final or inter ....as important AS and AAS are different for inter and final...
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On 04 October 2007 at 19:18

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