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Purchase of parts of machinery

Atharv Sankliya (1323 Points)

09 June 2022

does purchase of parts of machinery is capital expenditure ?

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3 Replies

Aanchal Aggarwal (76 Points)
Replied 10 June 2022

Hi!
if the purchasing increases the productivity of the asset it can be treated as capital otherwise regular spare parts are revenue in nature.

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sabyasachi mukherjee (27117 Points)
Replied 11 June 2022

If the quantum of the expenditure it can be used for amortizing a part of the cost of capital expenditure.

CA Rashmi Gandhi (Chartered Accountant) (86308 Points)
Replied 16 June 2022

Same is capital expenses and need to show as fixed assets.

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