Can the License fees for Tally software be treated as an operating expense or else it should be capitalised with the cost of the asset.
In this case License fees was paid for upgradation of existing license i.e.,Tally 9 to Tally ERP 9
CA M.Prabakaran (Manager - F&A) (81 Points)
14 July 2012Can the License fees for Tally software be treated as an operating expense or else it should be capitalised with the cost of the asset.
In this case License fees was paid for upgradation of existing license i.e.,Tally 9 to Tally ERP 9
Devendra
(Chartered Accountant)
(4775 Points)
Replied 14 July 2012
Debit the expense to Profit and Loss A/c. But if it prepaid then you will have to show it under the group Current Assets.
Regards,
Devendra Kulkarni
CA Sanjay Bag
(CHARTERED ACCOUNTANT)
(3345 Points)
Replied 14 July 2012
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