Lakhpati Patil (ICWA Final) (57 Points)
09 October 2012all
we have chemical factory & we purchase building material ( Cement, Bricks & other) for repairing factory building building material supplier charge sale tax on building material. If we treat this purchsae as Expenses so what is the retention rate on this purchase
Harshal Fifadra
(Chartered Accountant)
(1489 Points)
Replied 11 October 2012
Dear lakhpati
You cannot treat the purchase of building material as an expense.
You will need to capitalize the same under the head factory building.
You will potray the purchases as RD purchases not eligible for set off ...
Also, no set off available for purchases resulting into immovable property .....
Ok...
CAclubindia
