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.
CA Pratik Dharod (Bussiness) (178 Points)
31 August 2011If 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.
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.
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