23 February 2013
A Company has formed its website and has paid 19000 Rs for it.. Under what head this expense should be charged??? Can we charge it as Advertising expense????
24 February 2013
The web-site expenditure is whether a capital or revenue has to be decided from the manner in which the website is used. Sometimes web sites provide merely information about the product or services. In such cases it can be treated as revenue expenditure. . However, when the web-site is effectively used for business transactions and where it is difficult to deny that its use results in an enduring benefit, then the expenditure may be treated as Capital Expenditure. .
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