Sanjay Agarwal (MANAGER) (165 Points)
20 February 2011Ours is a Pvt Ltd Co
We have incurred cost = Rs. 1,50,000/- for Co.'s Website Designing.
Should it be treated as Fixed Assets or Expenses chargeable to P/L a/c.
If Fixed Assets, then what would be Rate of Depreication as per Companies Act & Income Tax Act.
Experts: Kindly advice. Thanks in Advance.
Deeejey
(May'11: The Final Assault in making of CA)
(201 Points)
Replied 20 February 2011
Refer AS-26 on intangible asset. Website development charges are is to be amortised in 5 years. this is not Fixed Asset.
dj
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