Shamita we generally capitalise the ERP software expense , but there are some decisions on this issue if the same interests you :-

 The logic is , since the application software is used on a daily basis , for day to day work , the same as be claimed as revenue expense

expenditure on ERP verision is capital nature

is expenditure on website is repeted periodically then revenue nature else capital nature

Very good opinion

sunil

Generally Expenditure on websites is incurred on the annual basis except for the site creation charges. Site creation charges/web site will give long term benefits and not going to be obsolete in short term period. So it should be capitalised, but the ultimate decision should be on the basis of materialy with respect to the volume and nature of business and the transaction involved.

this is in line with what has been said by CA.Tarun Maheshwari

If you incur charges on website creation it is a professional fees for technical services and allowed as a revenue expenditure. Creating the website is something that can be created and maintained even on a daily basis. All these are revenue expenditure.

However, if you pay hosting charges or domain name charges for say 5 years at a time, then you will have to capitalise it and charge the expense to your P&L account in equal proportion annually. A website is not of an enduring nature. You pay a yearly charge for domain name. You pay a yearly charge for hosting.

If you pay for web designing, you can prove it is not an enduring nature as you may be required to change the design and contents maybe even on a monthly basis. It can be proved that contents can go out of date every year. Even designing the website is a maintenance charge.

whatever is mentioned as 

 The logic is , since the application software is used on a daily basis , for day to day work , the same as be claimed as revenue expense.

The decision not showing amount of expenditure, we may buy tally software by expending 15000 and 30000/ here this expenditure is treated as Intingible Assets accordingly we claim dep @ 25%.

Most of the organisation expended 30Lakh on its ERP software then all may be decide this nature.

Hence the term license, permission to use the software and terms of agreements are also a majour part of decision of revenue or capital, tangible or intangible.

Hence in my opinion the expenses related to ERP software is Capital and intingible Expenditure for which dep @ 25% may be taken accordingly

whatever is mentioned as 

 The logic is , since the application software is used on a daily basis , for day to day work , the same as be claimed as revenue expense.

The decision not showing amount of expenditure, we may buy tally software by expending 15000 and 30000/ here this expenditure is treated as Intingible Assets accordingly we claim dep @ 25%.

Most of the organisation expended 30Lakh on its ERP software then all may be decide this nature.

Hence the term license, permission to use the software and terms of agreements are also a majour part of decision of revenue or capital, tangible or intangible.

Hence in my opinion the expenses related to ERP software is Capital and intingible Expenditure for which dep @ 25% may be taken accordingly