TaxTMI 
TaxTMI 
Credit of Renovation expenses done in a shop
X X X X Extracts X X X X
X X X X Extracts X X X X
....redit of Renovation expenses done in a shop<br> Query (Issue) Started By: - Pradeep Singhi Dated:- 30-9-2019 Last Reply Date:- 1-10-2019 Goods and Services Tax - GST<br>Got 6 Replies<br>GST<br>Whether credit can be taken for renovation expenses done in a shop ? Reply By KASTURI SETHI: The Reply: Yes, if not capitalized. Show such expenses as revenue expenditure in your books of account. Reply B....
X X X X Extracts X X X X
X X X X Extracts X X X X
....y atul rathod: The Reply: 1.Eligible as 17(5) restricts only credit to the extent of the capitalization to the said immovable property. In case of rented shop, there would not be capitalization of such expenses to any immovable property. (However this is aggressive view & could be litigated by department). 2. If it is not rented shop & its own, than eligible criteria would depend directly on cap....
X X X X Extracts X X X X
X X X X Extracts X X X X
....italization or charging off to P&L. If capitalized-Ineligible, & If charged to P&L-Eligible Reply By Ganeshan Kalyani: The Reply: I agree with the views of Sri Kasturi Sir . Reply By Alkesh Jani: The Reply: Dear Experts, For sake of my knowledge, If expenses are made for capital goods, it should go into the capital expenses and only those relating to revenue will go to revenue account. (thi....
X X X X Extracts X X X X
X X X X Extracts X X X X
....s is my understanding). Can we make such entries in book of account? is it permissible as per Accounting standards? Thanks in advance Reply By KASTURI SETHI: The Reply: Sh.Alkesh Jani Ji, In a layman's language, short period of time expenditure are revenue expenditure and long-term expenditure are capital expenditure. Examples of both are easily available on various sites. In pre-GST era,....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... Govt. allowed small expenses incurred up to 10,000/- in a purchase bill to be treated inputs for the purpose of cenvat credit (duty paid) instead of capital goods though the goods were classified as capital goods.We cannot treat revenue expenditure as capital expenditure and vice versa. Reply By Ganeshan Kalyani: The Reply: Well explained by Sri Kasturi Sir. The expense from which If the benefi....
X X X X Extracts X X X X
X X X X Extracts X X X X
....t is going to accrue for a longer period then it is capital expenditure. And if the benefit is for a shorter period then it is revenue expenditure. The depreciation benefit is not taking on the same. As the expenses are not capitalised in the block of asset.<br> Discussion Forum - Knowledge Sharing ....