Spare parts - are revenue expenses: Second hand machinery -as set of spare parts for machines in use is allowable expenditure- discussion of relevant aspects in view of a recent judgment.

Spare parts - are revenue expenses: Second hand machinery -as set of spare parts for machines in use is allowable expenditure- discussion of relevant aspects in view of a recent judgment. https://www.taxtmi.com/article/detailed?id=813 Acquisition of second hand machinery paid for in the year under the cash system, bought solely to dismantle and use its parts as spares for existing ageing equipment, constitutes revenue expenditure for maintenance; payment and transfer of title on sale complete the transaction for that year even if physical delivery occurs later, whereas acquisition for use as an independent machine would engage depreciation rules and different treatment. en-us Sat, 05 Jun 2010 00:00:00 +0530 Sat, 05 Jun 2010 08:29:51 +0530 TaxTMI RSS Generator Spare parts - are revenue expenses: Second hand machinery -as set of spare parts for machines in use is allowable expenditure- discussion of relevant aspects in view of a recent judgment. https://www.taxtmi.com/article/detailed?id=813 Acquisition of second hand machinery paid for in the year under the cash system, bought solely to dismantle and use its parts as spares for existing ageing equipment, constitutes revenue expenditure for maintenance; payment and transfer of title on sale complete the transaction for that year even if physical delivery occurs later, whereas acquisition for use as an independent machine would engage depreciation rules and different treatment. Articles Income Tax Sat, 05 Jun 2010 00:00:00 +0530 https://www.taxtmi.com/article/detailed?id=813