08 May 2010
In our company we are implemented SAP software and for that implementation we spend lot of amount in different category, for example software purchase, license fee, implementation professional charges including Travel & conveyance paid to implementation team. It's cost around Rs.1.75 cores. My question is: 1. While capitalizing SAP implementation expenses, under what asset class I need to take (Computer Software / intangible asset)? 2. What depreciation rate applicable as per company act? Please help anyone and thanks in advance for quick response. With regards, Baskar.V
08 May 2010
if you are purchasing like other readymade software your point is correct but SAP like software normally not readymade.only licence and hardware canbe purchased but total software need to provided customer specific and once the software devolped for your company the same cannot be used for other company.so it is purely internally generated intangible asset only. Other experts reply also solicited
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