FIXED ASSET, Other Topics

[SRINIVAS PALAKODETI]

WE HAVE PURCHASED A PAINTING COSATING RS. 400,000/-. HOW AND IN WHICH CATEGORY OF FIXED ASSETS UNDER THE COMPANIES ACT AND INCOME TAX ACT CAN WE CAPITALIZE THE SAME.

Posts / Replies

[CHITRA RAGURAM]

Please provide the nature of your companies business. Also please describe the product purchased.

[SRINIVAS PALAKODETI]

We are in Insurance business and product purchased is a painting.

[CA Rachit Agarwal]

If it is used in the office, the same could be capitalized to office building.

[CHITRA RAGURAM]

Paint is purchased for building renovation and hence it has to be debited to BUILDING account both under Companies Act and Income Tax Act.