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Digital signature certicate which expenses head will come

Srikanth (Accountant) (21 Points)

15 April 2017

Digital signature certicate which expenses will go?

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7 Replies

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You can debit it in Legal Compliance Expenses or even in Office Expenses. Expenses incurred on Digital Signature is not major one involving expenses ranging from 500 to 2500.

Aswathy Ajitth (2 Points)
Replied 13 June 2021

Thank you

Subrahmanya Aravind Vemparala (Paid Assistant) (33 Points)
Replied 17 February 2023

Digital Signature Certificate (DSC) expenses are personal expenses in nature. It is not a business expenditure. Hence, should not come in the books of accounts of business.

Yasaswi Gomes new (Finance ) (4474 Points)
Replied 17 February 2023

@ Subramanya this is not a personal expense and it's a legal fee

https://www.mca.gov.in/MinistryV2/digitalsignaturecertificate.html

https://www.mca.gov.in/MinistryV2/efiling.html#:~:text=An%20electronic%20document%20is%20the,14

DSC is used to sign e-forms. I don't know what it is but it can be pre operative or operating expenses.

Similarly, NSC card to work in a bpo. I don't remember if I paid for it.

Yasaswi Gomes new (Finance ) (4474 Points)
Replied 17 February 2023

I've gone through this e-filing for seconds and found out I'm not a gist anymore in this issue

https://www.mca.gov.in/MinistryV2/efiling.html

Subrahmanya Aravind Vemparala (Paid Assistant) (33 Points)
Replied 18 February 2023

@ Yasaswi The DSC can be used by the person for business as well as personal purposes also. If it is specifically used for the purpose of buisness, (like dgft purposes) then it can be classified as business expenditure. Otherwise, general DSCs either calss 2 or class 3 can be used for both to sign eforms, business documents and as well personal documents.

It might be a legal expenditure but will be personal legal expense not a business legal expense.

Yasaswi Gomes new (Finance ) (4474 Points)
Replied 18 February 2023

You got me wrong! I don't argue with you over transaction processing because it is just a skeleton diagram to final accounts. You forgot the essence in intangible assets. All pre and operating dady to day expenses are expensed. That is what we do here. Please go through research and development costs and where ever DSC is involved, it treated as per the standard.