Ours is a iron trading company.We have spent 20000/- for web site design and related expenses.Under which head we should book such expenses.
2 Replies
SIVASIVA
(FCA, Future CA)
(4935 Points)
Replied 29 June 2010
my opinion:
1. Website designing is a professional service. Hence, it should be booked under Professional Services Account Head.
2. Further, TDS IS DEDUCTIBLE if the same is paid during FY 09-10. However, the limit for Amount of Expenses is increased upto Rs.30,000 for the FY 10-11
3. Anyhow, comments from seniors are awaited.
sivasiva
Sunil Liladhar Kotak
(Manager (F & A))
(2025 Points)
Replied 29 June 2010
Dear Sanjaya,
It depends upon the nature of the Exp. Whether this exp. in recurring in nature or not & for which period u will be enjoying it's benefits.
Apparently it seems to be one time cost & therefor the same is to be capitalised.
sunil
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