Cost for opening the New website- is it capital expenditure or revenue???
17 Replies
Suresh
(Service)
(91 Points)
Replied 17 June 2011
Cost of Development of website should be capitalised in the first instance. However the maintenance charges if any should be charged off as Revenue. Hope this helps
CS,CA F,Numrologi TusharSampat
(CS CA F Numerologist Astrologer Graphologist Face reader Vastu Expert)
(85930 Points)
Replied 17 June 2011
| Originally posted by : Suresh | ||
 |
Cost of Development of website should be capitalised in the first instance. However the maintenance charges if any should be charged off as Revenue. Hope this helps |
 |
AGREED.
CA ANIL KUMAR
(TRANEE)
(46 Points)
Replied 17 June 2011
Any cost incurred in relation to development of new website will be capitalised in first instance. however any maintainance cost after completion will be treated as revenue expenditure
Abishek
(Student)
(1108 Points)
Replied 17 June 2011
Capitalise ..... Will tds(194J) be applicable for the professional charges to develop the website ?
Suresh
(Service)
(91 Points)
Replied 17 June 2011
Abishek: If any one enteres into a contract for developmet of software, the TDS will attract u/s 194c and not under 194J. since the dev. of software is customised as per the requirement of vendor , this will attract TDS u/s 194c
Rajnikant Vadigoppula
(CA, CS And CMA Final)
(919 Points)
Replied 17 June 2011
yes i agree with suresh and tushar
Koushik Chatterjee
(Student)
(33 Points)
Replied 18 June 2011
@ Ajith A.M.
You did not say regarding the entity which incurs the cost.
The above answers, mentioning it as Capital expenditure is true if considered from the view point of the user / owner of the website.
If we consider that you are a website developer, and makes it for your client, then such cost of developing a website is a revenue expenditure to you.
Please comment on my answer regarding your views to it.
prasanth.r.p
(amajith.nee@gmail.com)
(25 Points)
Replied 22 June 2011
Mr. Ajith A.M; it is
"capital expenditure "
"revenue expenditure in case it is a website developer"
Aparna Raja K.C
(Student)
(520 Points)
Replied 22 June 2011
Yes... One have to Capitalise it :)
and 194 J includes web designers in their professioanl net :)
So payment to Web designers will be subject to TDS :)
CA.Sampath Rao
(In Practice)
(78 Points)
Replied 23 June 2011
since the expenditure incurred on the website development will benifit the cmpany in future , it should be capitalised
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