Treatment of purchase of web domain

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

24 December 2010 hi.....
please let me know the treatment of purchase of web domain in the books of accounts...whether to capitalize it or whether to expense it out???????????

CA Shailesh Kumar Bhagat

CA Shailesh Kumar Bhagat (Expert)
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24 December 2010 The nature is like licence fees, it has to be amortized as expenditure. The nature is like deffered expenditure.

Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)
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24 December 2010 Cost of web domain is an intangible asset to be capitalized and depreciated @ 25 % for income tax purposes.

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Querist : Anonymous

Querist : Anonymous (Querist)

28 December 2010 sir would the treatment be dependent on the frequency of payments??????

I mean,

1. what if we pay for it at regular intervals in an year then shall it be treated as an expense,

2.what if we pay for it once a year i.e. renewal