Labour charge for building construction

dinu78

Hi,

for the building construction labour wages comes under which head weather this take under fixed assets or indirecter expenses.

niranjan.next

hello dear, the wages part will include in building cost or it is a fixed assets.

CA Ajay Kumar

If you are building it on behalf of customer then it will form part of your contract cost,to be billed to the Customers on basis of AS-7(R).that is % of completion method.

And if you build it on your own business then debit it to CAPITAL WORK IN PROGRESS A/C AND ON THE COMPLETION TRANSFERRED IT TO BUILDING A/C TO BE SHOWN AS AN ASSET.

susantasahoo

Quote:

Originally Posted by dinu78

Hi,

for the building construction labour wages comes under which head weather this take under fixed assets or indirecter expenses.

The answar will be ,direct exps