Office Renovation

our's is a pvt ltd company , now we are in rented premises, Recently  office is renovated total expenditure Rs.10 Lakhs,how can I book this amount( expenditure & additions to asset)

Replies (3)

Mr. Kumar

First of all you have ascertain the amount of capital expenditure which will form your (own) assets i.e during the course of rennovation if you purchased furniture or got it fabricated as per your specific needs and then ascertain the expenditure capital in nature spent for rennovating the floor of the rented building, plastering of walls etc.,

The capital expenditure spent on rented premises as explained above can be calimed as revenue expentiture. 

The capital expenture as explained above for acquiring assets such as furniture, AC machines etc., which are seperable from the rented building is a capital expenditure eligible for depreciations as per the rates provided under income tax rules.

Best wishes

Sathikonda

There are few judjements where renovation of rented premises is charged to revenue expenditure and allowed if they were for a shorter period. But if your rent term is long then go as above.

Mr.Aditya Maheshwari

Yes, there are very few judgements as you said in this matter.  Thank you for caustioning and alerting.

Best Wishes

Sathikonda

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