Hello Everybody,
Is Purchase of hard disk for systems can be capitalized ?
7 Replies
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
If you are an IT (selling), it will be purchase account it will not involve in the capital. Apart from IT Co.,, It will be capitalized. It means Office equipment assets value will be increased.
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