https://www.taxtmi.com/acts?id=20047 Borrowing costs, defined to include interest, commitment charges, amortised discounts or premiums, ancillary arrangement costs and finance lease charges, must be capitalised when directly attributable to acquisition, construction or production of qualifying assets. Specific borrowings capitalise actual borrowing costs; general borrowings are allocated for capitalisation using the AxB/C formula where A is non-specific borrowing costs, B is average qualifying asset cost or appropriate proportion, and C is average total assets excluding assets funded by specific borrowings. Capitalisation commences on borrowing or utilisation and ceases when assets are first put to use or inventory is ready for sale; disclosure of policy and amounts capitalised is required. en-us Fri, 11 Sep 2015 18:45:36 +0530 Mon, 09 Jan 2017 16:15:04 +0530 TaxTMI RSS Generator https://www.taxtmi.com/acts?id=20047 Borrowing costs, defined to include interest, commitment charges, amortised discounts or premiums, ancillary arrangement costs and finance lease charges, must be capitalised when directly attributable to acquisition, construction or production of qualifying assets. Specific borrowings capitalise actual borrowing costs; general borrowings are allocated for capitalisation using the AxB/C formula where A is non-specific borrowing costs, B is average qualifying asset cost or appropriate proportion, and C is average total assets excluding assets funded by specific borrowings. Capitalisation commences on borrowing or utilisation and ceases when assets are first put to use or inventory is ready for sale; disclosure of policy and amounts capitalised is required. Act-Rules Direct Taxes Fri, 11 Sep 2015 18:45:36 +0530 https://www.taxtmi.com/acts?id=20047