Reclassification of Capital Expenditure - Office equipment, Furniture & Fixtures, ICT

 

Reclassification of Capital Expenditure

Source: Click for RB Letter No. 2023/F(X)-I/33/Misc/4 dated 06.04.2023

• As of now, the office equipment, furniture, fixtures, computers etc are treated as Revenue expenditure irrespective of its value. 

• However as per the Railway Board Letter under reference, wherever exceeds threshold limits, they will be treated as Capital Expenditure instead of Revenue Expenditure. The details are as follows: 

Items	Exceeding Threshold Limit  (Either of two)		Chargeable to Capital Expenditure under Plan Head ______
	Value	Useful life
Office equipment and Furniture & Fixtures	1 Lakh	3 Years	PH 41 - M&P (Machinery & Plant)  or PH 64 - OSW (Other Specified Works) Or Relevant PH
Computers - Hardware & Software and Telecommunication devices	1 Lakh	3 Years	PH 17 - Computerisation Or Relevant Plan Head
Vehicles (Office or otherwise)	Irrespective of value	Irrespective of useful life	PH 41 - M&P

Notes: 

1. The items of Office equipment and Furniture & Fixtures, ICT equipment as Capital expenditure (i.e., exceeding threshold limit as above)  - Procured either as part of the Sanctioned Work or through Lumpsum provision. 

2. ICT stands for Information & Communication Technology