TaxTMI 
TaxTMI 
Our organisation is displaying signages in retail outlets and pays monthly rent to the retailers for the space provided. Can i capitalise the signages since these has a life of 3 years.
Capitalization of Signages
22 Jul 2021 
5 Replies 
9983 Views Asked by
Revenue expenditure: Signage costs treated as non-capital expenditure under precedents, not capitalisable for accounting and tax purposes.
Signage costs are treated as revenue expenditure, not capital, because signages are not immovable property and do not create an asset of enduring benefit due to limited useful life and frequent replacement; contributors conclude these costs cannot be capitalised, and a query as to specific IND AS and Companies Act 2013 treatment remained unanswered. (AI Summary)
Signage costs are treated as revenue expenditure, not capital, because signages are not immovable property and do not create an asset of enduring benefit due to limited useful life and frequent replacement; contributors conclude these costs cannot be capitalised, and a query as to specific IND AS and Companies Act 2013 treatment remained unanswered. (AI Summary)