Please comment your valuable thoughts on accounting treatment of software purchase-Customised software
Software purchase as Royalty u/s 194 J & 195
explanation 4 inserted by Finance Act, 2012 to the definition of royalty under section 9 clarifies that payment made towards purchase of computer software is royalty.
Software purchase as Revenue Expense
amount paid for purchase of computer software is royalty and shall be allowed as deduction under section 37(1) as revenue expenditure subject to the provisions of section 40(a)(i) and section 40(a)(ia).
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