The expenditure on maintainance of a building by a firm is a part of Intermediate Consumption and hence not included In NI
But from the point of view of the organisation which does this maintainance work it is an income for them received from rendering of productive services hence it should be included in NI
But if the same expenditure is incurred by a private household then shouldnt it be a part of Private Final Consumption Expenditure
So how to tackle these questions?????
Dear Student,
In these type of questions you have to know who is doing the expenditure.You have to know the nature of business or person who is doing expenditure.A activity can be intermediate consumption for one business but can be main business for one business entity. So, in these type of questions we have to know who is the person who is doing expenditure and what is the nature of business done by the person asked in the question.
Hope this information will clear your doubts on this topic.
If you have any more doubts just ask on the forum and our experts will try to help you out as soon as possible.
Regards
In these type of questions you have to know who is doing the expenditure.You have to know the nature of business or person who is doing expenditure.A activity can be intermediate consumption for one business but can be main business for one business entity. So, in these type of questions we have to know who is the person who is doing expenditure and what is the nature of business done by the person asked in the question.
Hope this information will clear your doubts on this topic.
If you have any more doubts just ask on the forum and our experts will try to help you out as soon as possible.
Regards