Please Help: Accounting treatment as well as Tax effect
Posted Date : 21-Jun-2016 , 11:26:06 am | Posted By: Pragnesh Jagasheth
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Income Tax | Answers :
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What is effect of Impact fees paid on property. Is it capital or Revenue Expenditure. What is effect on tax either the assesse can claim depreciation or it can be claimed as revenue expenditure in Profit and loss accounts? |
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| Posted By : |
23-Jun-2016, 04:49:50 |
| Impact fees A fee imposed on property developers by municipalities for the new infrastructure that must be built or increased due to new property development. These fees are designed to offset the impact of additional development and residents on the municipality's infrastructure and services, which include the city's water and sewer network, police and fire protection services, schools and libraries.
These fees can also be levied against any individual or entity where its actions create an externality within a municipality.
It is a Capital expenditure and hence added in the value of Building. Assesse can claim depriciation. |
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