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.
2 Replies
Amit Gupta
(Loosening Myself)
(1508 Points)
Replied 01 September 2011
Software should be capitalised as having perpetual life or life of more than 1 year.
Suraj S
(Audit Executive)
(335 Points)
Replied 01 September 2011
Software is very much a capital expenditure and Depreciated @ 40% as per Companies Act and @ 60% as per IT Act.
Recent Topics
- NRO Interest - Taxed at source and in Foreign Coun
- Clarity needed on effective date
- Income Tax Refund Deadline Shortened to Five Years
- Rectification Applications for Past GST Demands
- Where can I find a trusted provider to hire a skip
- GST Invoices Series
- FILING OF ITR AY 20-21
- CLAIMING OF U CLAIMED RCM
- Building construction works
- REGARDING GSTR-9 F.Y 2023-24
Related Threads
CAclubindia
