Is renovation capital expenditure??

Well it depends on the circumstances and nature of renovation, if the renovation improves the life of building or the utility arrived out of the building the expense would be capital like replacing large pillars with smaller ones which increases space or creation of additional floor or renovation of walls which increases its durability by few years etc., but if it is just needed to maintain the building in current state or if it is yearly maintenance expense then it will be revenue nature.

Aswin Chandar

CA Final

★ 40K+

29-Sep-22 16:29

Yes it is capital expenditure

Mohammad Badurul

CA Final

★ 10K+

29-Sep-22 16:15

No it's just an expense and treated as ads exp

Sugam SM

CA Final

★ 9K+

29-Sep-22 16:15

If renovation is done to increase any benefit ,it is capital expenditure.Well it should be non recurring in nature

Shankari C

CA Inter

★ 12K+

29-Sep-22 18:19

It depends on case to case basis. Normally - Existing interiors will be recognised and new interiors would be recognised as asset.

CA Suraj Lakhotia

Admin

30-Sep-22 15:58