Shrishti Ltd. contracted with a supplier to purchase machinery which is to be installed in its Department A in three months' time. Special…

Shrishti Ltd. contracted with a supplier to purchase machinery which is to be installed in its Department A in three months' time. Special foundations were required for the machinery which were to be prepared within this supply lead time. The cost of the site preparation and laying foundations were - 1,41,870. These activities were supervised by a technician during the entire period, who is employed for this purpose of 45,000 per month. The technician's services were given by Department B to Department A, which billed the services at 49,500 per month after adding 10% profit margin. The machine was purchased at 1,58,34,000 inclusive of IGST @ 12% for which input credit is available to Shrishti Ltd.55,770 transportation charges were incurred to bring the machine to the factory site. An Architect was appointed at a fee of 30,000 to supervise machinery installation at the factory site. Ascertain the amount at which the Machinery should be capitalized under AS 10 considering that IGST credit is availed by the Shristhi Limited. Internally booked profits should be eliminated in arriving at the cost of machine.