News Rules For Making Departure Betwixt Upper-Case Missive Of The Alphabet As Well As Revenue Expenditure
Ist Rule
All expenses which are done for getting whatever fixed property must hold upwardly upper-case missive of the alphabet expenditure. For example, expenses of railroad vehicle together with freight for getting fixed assets are too upper-case missive of the alphabet expenditure together with volition include inwards the full damage of fixed assets.
2nd Rule
All expenses which are done for increasing the size or improvement inwards fixed assets must hold upwardly upper-case missive of the alphabet expenditure.
3rd Rule
All expenses which are done for getting percentage upper-case missive of the alphabet or long term loan must hold upwardly upper-case missive of the alphabet expenditure.
4th Rule
Look too nature of line of piece of occupation organization , if line of piece of occupation organization is relating to full general goods sale -purchase transaction hence higher upwardly 3 rules volition applicable simply , if nature of line of piece of occupation organization shows dealing inwards higher upwardly transaction , hence higher upwardly transaction becomes revenue expenditure .
5th Rule
Legal judgments is too hence of import for taking conclusion , Like Income revenue enhancement police delineate 1961 has provided unopen to dominion regarding assessment of line of piece of occupation organization together with profession . These rules too laissez passer skilful guidance for making divergence betwixt revenue together with upper-case missive of the alphabet expenditures.