I have a computer software, which is update every year. So, the updatation fees/charges which A/c to be debited. Is it Computer Software[Asset] or Technical Service[Ind. Expenses]. Plz help me. Thanks in advance
Vikas Dighe (Tax Consultants) (49 Points)
17 January 2013I have a computer software, which is update every year. So, the updatation fees/charges which A/c to be debited. Is it Computer Software[Asset] or Technical Service[Ind. Expenses]. Plz help me. Thanks in advance
manoj
(student)
(5205 Points)
Replied 17 January 2013
updation cost will be a revenue expenditure as it is recuring expeneses
Gururaj V Megharaj
(IPCC)
(70 Points)
Replied 17 January 2013
Technical Service[Ind. Expenses] is to be debited.
CA CS Himanshu Khandelwal
(SAP FICO Consultant)
(705 Points)
Replied 17 January 2013
Being updation of the software is a recurring nature so technical service account should be debited & should be charged to revenue account instead of caplitalizing the same....
LIVE Form 10 B and Form 10BB: Handle Tax Audit Reports of Charitable Organizations(with recording)
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