whether in any INDIAN act it software is considered as intangible? what income tax act says about the same
depreciation on software
Page no : 2
Ratan Deep Saxena
(Asstt Manager (Accounts & Finance))
(2998 Points)
Replied 26 October 2009
Dear Kaya,
I will revert u soon as i m leaving from the office.
regards,
ratan
Ratan Deep Saxena
(Asstt Manager (Accounts & Finance))
(2998 Points)
Replied 26 October 2009
Dear Kaya,
Plz see the attached file.
regards,
ratan
Attached File : 31 new microsoft word document.doc downloaded: 257 times
M. SIVAKUMAR
(Manager-Accounts)
(76 Points)
Replied 27 October 2009
Ms Kaya
As per my knowledge, the physical existency of an asset is determined its nature.
Assets having a physical existence, such as cash, equipment, and real estate; accounts receivable are also usually considered tangible assets for accounting purposes. opposite of intangible asset.
M.SIVAKUMAR-GOA
Nikit Popli
(Consultant - Tax & Regulatory Services)
(24 Points)
Replied 06 June 2010
As per section 2(11) of income tax act block of computers include ‘computer software & intangibles including –know how, patents, copyrights, trademarks, licenses, franchises and and any other business or commercial rights of similar nature.’
But as per paragraph 7 of AS-26 intangibles include computer software.
So as per IT act it is a part of computer and as per companies act it is an intangible asset.
With all regards the refernce of judgment given above is for income tax purposes only
Kalpesh Chauhan,
(Tax Assistant (Accounting Technician CA FINAL CS PROF. PROG. B.Com))
(8311 Points)
Replied 17 June 2010
(Guest)
Dear Kaya,
Software which is not integral part of hardware is treated as Intangible asset as per AS 26 issued by ICAI.
It also suggets that the amount should be written off over 3 - 5 years depending upon the obsoloscence, technology etc.
So if we take that the life of the S/w is 5 yrs amortisation rate will be 20%p.a
For further info pls refer to the Appendix of the AS 26 it has clearly explained the topic.
Hope now your doubt is cleared
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