Railway Accounts Department Examinations

Showing posts with label furniture & fixtures. Show all posts
Showing posts with label furniture & fixtures. Show all posts

Tuesday, April 23, 2024

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