Hello Everybody,
Is Purchase of hard disk for systems can be capitalized ?
navinkumar naicker (Article) (419 Points)
19 October 2012Hello Everybody,
Is Purchase of hard disk for systems can be capitalized ?
ANJALI NEGI
(Chartered Accountant)
(1263 Points)
Replied 19 October 2012
If hard disk is capable of improving the capacity of the system then it should be capitalised....else it is just another repais and maintenence and should be charged to revenue...
navinkumar naicker
(Article)
(419 Points)
Replied 19 October 2012
the basic function of Hard Disk is it increases the storing capacity of the System and in return i think it increases the eficiency of the system.
so may be it should be capitalized, still Confused!!!!!!
ANJALI NEGI
(Chartered Accountant)
(1263 Points)
Replied 19 October 2012
Any expenditure that increases the efficiency of an asset should always be capitalised...
CA Pooja Agarwal
(Chartered Accountant)
(3228 Points)
Replied 19 October 2012
hard is categorised under computer peripherals subject to depreciation @ 60% uner icome tax act..accordingly it should be capitalised
yusufsahibmaricar
(Office Manager Cum Accountant)
(40 Points)
Replied 20 October 2012
Live class on PF & ESI Enrollment & Returns Filing(with recording)
CAclubindia
