Interest Costs as Allowable Business Expenses in Construction Under AS 7: Accumulate and Claim Once Thresholds Met.

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Full Text of the Document

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....Allowable business expenses - AS 7 on Construction Contracts - in the business of development and construction, the interest cost though allowable have to be accumulated as per the method of accounting followed by the assessee wherein it is accumulating all the project costs and the same is claimed as and when it achieves the prescribed construction and development threshold - will be required to be accumulated as part of WIP....