Dear All,
Depreciation on SAP B1 software is allowable under IT Act?.It come under intangible assets?Pls reply
Thanks & Regards
sumit jain
(.)
(844 Points)
Replied 22 September 2011
to my knowledge computer software is eligible for depreciation and the rate applicable is same as computer
Jayesh
(Internal Auditor)
(214 Points)
Replied 22 September 2011
Yes. computer software is eligible for depreciation under Income Tax Act,1961. The rate is same as that of Computer i.e.60%. Computer Software is intangible assets but it is contained in tangible media(computer) therefore, where Intangible part does not have a stand-alone value, we do not consider intangible asset as a separate asset. Hence rate applicable to computer is only applicable to software and hence rate applicable to intangible(25%) is irrelevant. Hope this resolves your query upto your satisfaction.
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