TaxTMI 
TaxTMI 
We have started production in may 11 but it took a month to stablise the production ie to the normal capacity .
Whether we can treat that one month expenditure as trail run and capitalise accordingly. pls advice
Trial run expenditure
03 May 2012 
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Trial run expenditure may be capitalised when production requires a stabilisation period after commencement of operations.
Expenditure incurred during a one month post commencement stabilisation period after production began may be capitalised as trial run expenditure, treating the trial run costs as capital rather than revenue in nature. (AI Summary)
Expenditure incurred during a one month post commencement stabilisation period after production began may be capitalised as trial run expenditure, treating the trial run costs as capital rather than revenue in nature. (AI Summary)