Depreciation on software licences

software license is considered as an intangible asset, so cost will be considered as a capital expenditure and it will be amortised over its validity period.

If license is valid only for 1 year and you have to pay the renewal cost every year then amortise entire amount in a year. Or you can also debit the amount in Profit & Loss Account under Indirect Expenses - like computer Maintenence Exp. Either way, the effect will remain same but to debit in P&L A/c. looks better.

since fees is to be paid annually the amount paid is to be recognised in that concerned year only