Hello,
Please tell me the rate of Depreciation on Software according to Company's Act and Incometax Act.
Manika Venkata Siva Prasad
(IPCC-student)
(84 Points)
Replied 27 August 2011
Income Tax Act - WDV Method - 60%
Companies Act - WDV - 40% & SLM - 16.21%
Sumit Grover
(Chartered Accountant )
(3652 Points)
Replied 27 August 2011
In ma opinion, the rate as per income tax act is correctly answered by Manika
but for accounting purpose, i thnk for software, AS-26 is applied........
(i.e to be amortised in 3-5 years).............
plz correct me if m wrng..........
amit jain
(Chartered Accountant)
(532 Points)
Replied 27 August 2011
Rate as per income tax is 60%
As per companies act 40% (wdv)
16.21% (slm)
Sumit Grover
(Chartered Accountant )
(3652 Points)
Replied 27 August 2011
But in schedule XIV, isnt dat for Computer???????
and not for software?????/
CA. Anubhav Jaggi
(CA)
(104 Points)
Replied 27 August 2011
I agree with CA. Sumit.
As per I.T Act, the rate is 60%. But as per companies act, the rate of 40% is applicable if software is installed in computer and necessary for its operation.
But if software is purchased idependently (Application software), AS-26 (Intangible Assets) is applicable.
Correct me if I am wrong.
Sushmita
(CA-Final(Intern))
(262 Points)
Replied 28 August 2011
| Originally posted by : Anubhav | ||
 |
I agree with CA. Sumit. As per I.T Act, the rate is 60%. But as per companies act, the rate of 40% is applicable if software is installed in computer and necessary for its operation. But if software is purchased idependently (Application software), AS-26 (Intangible Assets) is applicable. Correct me if I am wrong. |
 |
can the same be applicable for purchase of Antivirus software.
Please guide.
Manika Venkata Siva Prasad
(IPCC-student)
(84 Points)
Replied 29 August 2011
I read the AS-26, and agree with sumith
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