Capital Expenditure
This query is : Resolved
18 July 2011
One of our Assesse have obtained a license.its a license for usage of certain software for its business.
Later it made some additional payments to extend the availability of software to one of its franchise.
now the issue is A.O. have asked the assesse to treat this extra payment as Capital Expenditure.
But.. wont it be a revenue expenditure?
Later it made some additional payments to extend the availability of software to one of its franchise.
now the issue is A.O. have asked the assesse to treat this extra payment as Capital Expenditure.
But.. wont it be a revenue expenditure?
18 July 2011
If additional payments is made to extend the availability of software for the future benefit then exp would be capitalized
18 July 2011
From the data available,it seems to me that additional expenses should be capitalized.
18 July 2011
Say,
initially .. for obtaining the license a sum was payed and it was capitalised. now this payment was made to get that software installed in just 1or 2 more computer(s) in one other branch.
Still recquried to capitalsie it?
initially .. for obtaining the license a sum was payed and it was capitalised. now this payment was made to get that software installed in just 1or 2 more computer(s) in one other branch.
Still recquried to capitalsie it?
18 July 2011
please do guide me with appropriate section(s) ...
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- Is this income indian or foreign income?
- ITC temporary reversal and reclaim
- GST on export of services and Input Credit
- RCM applicability on Rent Paid by Registered Person to Unregistered Landlord for Residental Building
- Inventory of finished goods
- Applicable TDS rate for sale of property in Nov 2024
- Sale of property furniture sale
- Can we claim ITC of Feb-2024 in the month of November-2024 which was not claimed by oversight
- REGARDING 25 AS DATE OF PAYMENT AND DATE OF BOOKING
- Tds on building rent monthly
- Regarding Waiver of Interest levied u/s 50 of PGST/CGST Act
- LAST YEAR 2022-23 ITC IN NEXT YEAR 2023-24 REPORITNG IN GSTR-9
- MIS MATCH OF INVOICE NUMBER
- IGST Credit-Show cause notice issued-confusion
- Issue of gst e invoice
- How to adjusted advances given or receipt
- Foreign vendor without PAN unable to to register due to non receipt of OTP on foreign number ?
- 133(6) DIN INVALID format error - ->WHERE TO REPLY 133(6) notice?
- Query for dubts
- Regarding einvoice taken on nil rated sales
Trending Online Classes
CAclubindia
