Depreciation on Software
This query is : Resolved
05 August 2008
A company has purchased computer software worth Rs.30 Lacs. Can company claim depreciation @15% considering it as general plant & machinery? or it has to claim the depreciation @60% as per the income tax act?
05 August 2008
Computer System comprises Hardware and software,and both are conclusive part of each other. One can not perform without the other. Software as such is also a part of computer system and it can be depreciated @ 60%.
05 August 2008
Thanks Ramesh......but Can it be dereciated at a lower rate of 15%? or because it is a software depreciation has to be claimed @60%. my intention is to claim depreciation at a lower rate so that expenses are spread out evenly over the uears? is it valid?
07 August 2008
yes, it can be but a note to that effect is required to be given in the Note to Accounts or otherwise the Auditor will have to qualify the Audit Report.
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