A company developed cyclinders for getting packing materials. These cyclinders costs us ₹ 70000/- These cyclinders are in possession of suppliers.
As and when will order supplier for packing materials, he will supply the packing materials made using such cyclinders.
Query is
In which head we should book such cyclinders, keeping in mind that such cyclinders has not entered the premises of company i.e. same is in posession of supplier.
Guidance Sought on Accounting Treatment of Development Costs for Supplier-Held Cylinders for Tax Purposes A company incurred a cost of 70,000 for developing cylinders used by suppliers to produce packing materials. The query seeks guidance on how to categorize these cylinders in the company's accounts, given that they remain with the supplier and have not entered the company's premises. The discussion focuses on the appropriate accounting treatment for income tax purposes, with a participant seeking expert advice on this matter. (AI Summary)
TaxTMI 
TaxTMI 
TaxTMI 
