Software development expenses Worth Rs.500000/- In which catagory
fall.
profession or Technical service or
Royalty.
Is this expenses can treat as deferred revenue expenditure.
Deferred revenue means, your customer pays you advance but you did not deliver goods and services yet. Its a liability.
TDS 194j is applicable for technical @ 2% and for professional services @ 10%. what did you pay for technical or professional? If it is inhouse development, no tds as you paid your salary.
Development costs will be capitalised
CAclubindia
