RTO & Insurance charges for New Car is to be capatilised or we can debit to P&L. For this any AS is available. Pl inform the same.
Deepak Tapse (Accounts Manager - Taxation) (1771 Points)
01 July 2009RTO & Insurance charges for New Car is to be capatilised or we can debit to P&L. For this any AS is available. Pl inform the same.
Kalpesh
(Accountts & Income Tax)
(338 Points)
Replied 01 July 2009
Sir,
RTO is one time tax and we can utilise it for next 15 years. cant we transfer RTO in capital assets?
praveen
(Chartered Accountant)
(6971 Points)
Replied 01 July 2009
boss it is simple
expenses having long term benefits are capitalised and those which are recurring or whoose utility is less than or equal to an year shall be routed to profit and loss account.
Yogesh Shah
(Managing Corporate Finance)
(1051 Points)
Replied 01 July 2009
Hi dude,
I think, RTO tax should be capitalized & Insurance Charges should be charged to P&L A/c. (subject to - Car is used for a business purpose.)
RAMANJU
(here to updating the knowledge)
(485 Points)
Replied 01 July 2009