software - income tax treatment

krishna iyer (Sr.Finance Manager) (197 Points)

24 August 2009  

 pl clarify on the following

a co incurs expenditure on ERP implementation like SAP,  to cope up with modern accounting trends.  The benefit of ERP extends for more than an year (may be 5 years- by that time new versions may come, present version may become redundant)

 

what is the treatment of said expenditure in Financial books & I.T.- whether can be treated as a revenue expednture in the year of implementation.

 

 

regards