whether software is consideredas intangible asset or not. what is the per cent of depreciation of software as per IT & COMPANY LAW
22 Replies
BHAGYESH RAVANGE
(C.A Job)
(1528 Points)
Replied 01 October 2009
Income Tax Act - WDV Method - 60%
Companies Act - WDV - 40% & SLM - 16.21%
CA. Megha Topiwala
(Job)
(1534 Points)
Replied 01 October 2009
yeh... rates specified by bhagyesh is correct...
(Guest)
RATE OF DEPRECIATION. REFER TO POINT NO. 5 IN THE FILE.
Attached File : 24 rate of depreciation.pdf downloaded: 506 times
Mirza S Baig
(CA )
(91 Points)
Replied 02 October 2009
Income Tax Act - WDV Method - 60%
Companies Act - WDV - 40% & SLM - 16.21%
what is quoted by MD Raza above is correct.
KO RAMESSH KUMAR
(TAX PRACTITIONER)
(24 Points)
Replied 04 October 2009
NO. IT WILL NOT BE CONSIDERED AS AN INTANGIBLE ASSET. REGARDING RATE OF DEPN, THE RATE SPECIFIED BY BHAGESH IS CORRECT
CA.kaya
(Chartered accountant)
(3990 Points)
Replied 26 October 2009
in october month "chartered accountant' journal , one article called recognition of cost & revenue of computer software is published. in that author says softwares are not integral part of related hardware so its considered as intangible asset.. now i am agian confused ...
Ratan Deep Saxena
(Asstt Manager (Accounts & Finance))
(2998 Points)
Replied 26 October 2009
Cost of software comprises the part of software and hence the same should be capitalised. The reason behind that software is purchased for use for long term purpose and provide long term benefit to the companybecause it is not possible for a company to change its software quickly. Hence value of software should be capitalised. I think ur doubt must be cleared.
Rate of Depreciation
Tax purpose 60%
Companies Act 16.21% (SLM) & 40%(WDV)
regards,
ratan
CA.kaya
(Chartered accountant)
(3990 Points)
Replied 26 October 2009
ratan sir my doubt is software is tangible or intangible asset .. please specify the section of the act
Ratan Deep Saxena
(Asstt Manager (Accounts & Finance))
(2998 Points)
Replied 26 October 2009
Dear Kaya,
Computer is treated as an intangible assets. I hv a attached file for your reference.
regards,
ratan
Attached File : 36 ias 01c.pdf downloaded: 230 times
CA.kaya
(Chartered accountant)
(3990 Points)
Replied 26 October 2009
thank you sir . but can you please provied me the fullform of AASB
Ratan Deep Saxena
(Asstt Manager (Accounts & Finance))
(2998 Points)
Replied 26 October 2009
AASB Stands for Australian Accounting Standard Board.
regards,
ratan
Recent Topics
- Income Tax Refund Deadline Shortened to Five Years
- Rectification Applications for Past GST Demands
- Where can I find a trusted provider to hire a skip
- GST Invoices Series
- FILING OF ITR AY 20-21
- CLAIMING OF U CLAIMED RCM
- Building construction works
- REGARDING GSTR-9 F.Y 2023-24
- Rectification to decrease income in SCHEDULE OS
- Can Statutory Auditor of a subsidiary become concu
Related Threads
CAclubindia
