depreciation on website

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raj kumar

raj kumar (Querist)
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19 April 2010 sir what is the rate of depreciation on website in accordance with income tax act & company act ?

Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)
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19 April 2010 It can be claimed as revenue expenditure.

Citation:- CIT Vs Indian Visit.com (P) Ltd (2009) 176 Taxman 164(Del).

Court observed as follows:-
Since the purpose of creating a website is not to acquire an asset but to promote the business it is revenue expenditure.

ca dipti sharma

ca dipti sharma (Expert)
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19 April 2010 U cant claim depreciation benifit on website expenses as per Income Tax Act as well as in Company Act, It is totally a revenue expenditure.

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