ACCOUNTING TREATMENT FOR EXPENDITURE

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....CCOUNTING TREATMENT FOR EXPENDITURE<br> Query (Issue) Started By: - NITIN DESAI Dated:- 29-10-2015 Last Reply Date:- 2-12-2015 Accounting - Auditing<br>Got 5 Replies<br>Companies Law<br>SIR, OUR&#39;S IS PRIVATE LIMITED COMPANY. DURING F.Y. 2014-2015, WE HAVE SET UP NEW PROJECT IN DAHEJ SPECIAL ECONOMIC ZONE, DAHEJ. WE HAVE ELECTRICITY PURCHASE ARRANGEMENT FROM M/S TORRENT ENERGY LTD. NOW AT THE ....

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....TIME OF PROVIDING ELECTRICITY LINE FROM THEIR POINT TO OUR FACTORY, WE HAVE PAID RS. 15 LAC TOWARD SERVICE LINE COST. THE COMMERCIAL PRODUCTION HAS COMMENCED IN MAY,2015. MY QUERY IS WHETHER SUCH EXPENDITURE IS CAPITAL EXPENDITURE OR REVENUE EXPENDITURE OR DEFERRED REVENUE EXPENSES. PLEASE PROVIDE EXPERT OPINION WITH CASE LAW IF AVAILABLE. Reply By MARIAPPAN GOVINDARAJAN: The Reply: In my view ....

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....it is capital expenditure. Reply By NITIN DESAI: The Reply: Sir, Thank you for your prompt response. ok, if it is capital expenditure, can we capitalised in our books of accounts as there is no tangible assets created for the same, how to claim the depreciation . Nitin Desai Reply By MARIAPPAN GOVINDARAJAN: The Reply: Your question is quite correct. I shall analyse the same and will revert. ....

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.... Reply By Ganeshan Kalyani: The Reply: I guess it will fall under Plant and Machinery as per Income Tax and could be taken along with transformer cost. I would expect experts to comment on this for discussion. Reply By Ganeshan Kalyani: The Reply: Hope the query is resolved.<br> Discussion Forum - Knowledge Sharing ....