Composite GST notices across tax periods breach separate limitation requirements, permitting fresh period-compliant proceedings where lawfully availab...
Realised foreign exchange loss arising on settlement of a foreign-currency liability may be capitalised into the actual cost of the related capital asset under section 43A. Where the taxpayer records assets at the prevailing exchange rate, capitalises the exchange difference only upon final settlement, and does not claim that loss separately as revenue expenditure, the enhanced asset cost forms the basis for depreciation. Depreciation on the capitalised realised loss is therefore allowable, and a disallowance of such depreciation is not sustainable.
Realised foreign exchange loss arising on settlement of a foreign-currency liability may be capitalised into the actual cost of the related capital asset under section 43A. Where the taxpayer records assets at the prevailing exchange rate, capitalises the exchange difference only upon final settlement, and does not claim that loss separately as revenue expenditure, the enhanced asset cost forms the basis for depreciation. Depreciation on the capitalised realised loss is therefore allowable, and a disallowance of such depreciation is not sustainable.
Note: It is a system-generated summary and is for quick reference only.
TaxTMI 
TaxTMI 
