Kapil Dhiman (Accountant) (304 Points)
08 September 2014Hi I am working in a IT company
1. Our company purchased a domain name paid to Godaddy periodically then it would be treated as an expense or asset ? and also clarify what is domain name ?
2. We purchased computer parts seperately only of use then it would be treated as expense or asset?
3. Inverter Battery and UPS is asset ot expense as we know batteries life is mostly 3 -5 years?
Its urgent plz help earlier as soon as possible.
Sivaguru SM
(Tax Consultant)
(235 Points)
Replied 08 September 2014
Kapil Dhiman
(Accountant)
(304 Points)
Replied 09 September 2014
Hi
I am agreed with you but
1. how we debriciate intangible assets as we paid monthly to godaddy for domain ?
2. How if some parts are purchased in december how we debriciate ?
3. How we debriciate UPS and batteries (means in how many years) which type of method we should use for debriciation ?
4. We also purchased Web hosting service from GO daddy. Is this an expense or asset and under which head it can be classfied ?
Sivaguru SM
(Tax Consultant)
(235 Points)
Replied 09 September 2014
Mr Kapil
1. First you tell me what type of Invoice they are raising when you pay monthly payment for Godaddy.
2. If you purchase spares in December you have to Add to Fixed Assets and take 5% of deprcn on that particular material u purchase.
3. For UPS & Batteries you have add those in the Electrical fittings Deprcn @ 10% as per standard format U/s IT Act
4. You are paying monthly means, if it is rent/contract you have to show as expenses
I think these r all suffice to you
CAclubindia
