Capitalisation of software

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Prithi (Querist)
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17 August 2011 Hi,

As everyone knows that there are 3 kind of Software and they are as follows:

1. Programming Software
2. Application Software
3. System Software

Can anyone tell which is to be capitalised and which has to be treated as Revenue Expenditure????? Please help me its really urgent

CA Navin Jain

CA Navin Jain (Expert)
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17 August 2011 if these software provide the future benefit due to there use for more than one year then should be capitalised

Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)
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17 August 2011 If the expenses are incurred for 'replacement of soft ware' all the three can be expensed out.
Citation :- CIT Vs. Southern Roadways Ltd (2008) 304 ITR 84(Mad).

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Prithi

Prithi (Querist)
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17 August 2011 Thank you for your Inputs Sirs

Prithi

Prithi (Querist)
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26 December 2011 thx for all help