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Licence Fees

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Querist : Anonymous

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Querist : Anonymous (Querist)
21 December 2009 hello all

please help me in the matter.

licence fees can be revenue expenditure or capital expenditure. suppose i paying x amount to the other company for the the purpose of software licence / licence fees and the property of the licence will be of the supplier over and above we have to pay AMC/ Renewal fees every year whether the licence fees paid initially for the installation of license in our computer.
can it be treated as revenue expenditure or capital expenditure??????

22 December 2009 Capital Expenditure.

Hence; you can claim depreciation @ 60%.



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