8 Apr 2021
Hey, I am a managing director of Rajdarbar Hotel, i recently just came to the hospitality industry, i have a query regarding my lift maintenance so there is a gst bill which is of my annual maintenance (AMC) of around ₹56,000 and a bill of the new parts and belts and some lift attachments that have been fitted which costed my around ₹2,65,000, so i wanted to know where should my account mention these two particulars in repair and maintenance of assets of the company
CA Puja Sharma
9 Apr 2021
The expenditure of Rs. 2,65,000 if have increased the useful life of the asset then it should be capitalised and added to the cost of the Asset.
Further AMC should be recorded as revenue expenditure and charged to Profit & Loss A/c.
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