TMI BlogTangible fixed assets - only for AY 2016-17X X X X Extracts X X X X X X X X Extracts X X X X ..... ance of books of accounts. In the case of conflict between the provisions of the Income-tax Act, 1961 ('the Act') and this Income Computation and Disclosure Standard, the provisions of the Act shall prevail to that extent. Scope 1. This Income Computation and Disclosure Standard deals with the treatment of tangible fixed assets. Definitions 2(1) The following terms are used in this Income Computation and Disclosure Standard with the meanings specified: (a) Tangible fixed asset is an asset being land, building, machinery, plant or furniture held with the intention of being used for the purpose of producing or providing goods or services and is not held for sale in the normal course of business. (b) Fair va ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... anges in foreign exchange rates. 7. Administration and other general overhead expenses are to be excluded from the cost of tangible fixed assets if they do not relate to a specific tangible fixed asset. Expenses which are specifically attributable to construction of a project or to the acquisition of a tangible fixed asset or bringing it to its working condition, shall be included as a part of the cost of the project or as a part of the cost of the tangible fixed asset. 8. The expenditure incurred on start-up and commissioning of the project, including the expenditure incurred on test runs and experimental production, shall be capitalised. The expenditure incurred after the plant has begun commercial production, that is, production in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed of, shall be treated as separate asset. Valuation of Tangible Fixed Assets in Special Cases 14. Where a person owns tangible fixed assets jointly with others, the proportion in the actual cost, accumulated depreciation and written down value is grouped together with similar fully owned tangible fixed assets. Details of such jointly owned tangible fixed assets shall be indicated separately in the tangible fixed assets register. 15. Where several assets are purchased for a consolidated price, the consideration shall be apportioned to the various assets on a fair basis. Transitional Provisions 16. The actual cost of tangible fixed assets, acquisition or construction of which commenced on or before the 31st day of March, 2 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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