License Fees

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sandeep (Querist)
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06 November 2010 Hi,

If i have paid License fees for a software. Should it be capitalized or not?

Similary if cost incurred on purchase of memory card for a PC. Should it be capitalized or not?

Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)
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07 November 2010 Appendix-1 ,Part B,to rule 5 of Income tax rules,1962 says Licences are "intangible assets". In view of that, it can be capitalized for income tax purposes and can be depreciated @ 25% per annum.

suresh ananthuni

suresh ananthuni (Expert)
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09 November 2010 License fees to be capitalised.

What is memory card iam not clear.If it is in the nature of RAM, it should be capitalised.

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