If a company incures expenditure or31000 for purchasing computer software which has perpatual life then it should be considered as revenue or capital expenditure?
Compnies turnover is35,00,000.
If possible please give some case law referance.
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Capital or revenue
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Software should be capitalised as having perpetual life or life of more than 1 year.
Software is very much a capital expenditure and Depreciated @ 40% as per Companies Act and @ 60% as per IT Act.
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