Capitalisation of Software product

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

11 May 2011 Dear All,

I have some questions to clarify, kindly clarify.

our company registered in Bangalore under KVAT /CST.

we are Implementing SAP ERP software from Mumbai based company,the vendor is raising his invoice from Mumbai.

we are registered under CST Commodites for All Types of Capital Goods.

now the Question is.

1. Can we purchase this SAP ERP software against C Form ( Since we have registered for All Capital Goods uder CST)
2.can we capitlise the Expenditure incurring for SAP ERP ( All Computer systems are purchased in previous years now only the Servers are buying locally)

Kindly solve the problem if any body

Amol Gopal Kabra (CA,CS,DISA)

Amol Gopal Kabra (CA,CS,DISA) (Expert)
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11 May 2011 The software can not be issued against c-form. C-Form is available for assets only in case of Plant & Machinery. So, in this case C-Form is not available.

You cant capitalise the expenditure made on Servers etc along with software. Servers need to be categorised under computers. Software shall be under separate block. All the expenses that is particularly made for ERP purchase can be capitalised with it.