Whether capitalise or revenue?

capital expanditure                                     

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

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.

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

Capitalise .....   Will tds(194J) be applicable for the professional charges to develop the website ?

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

yes i agree with suresh and tushar

@ 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.

Thaks for timely explanations

capital expenditure...

Mr. Ajith A.M; it is 

"capital expenditure "

"revenue expenditure in case it is a website developer"

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 :)

since the expenditure incurred on the website development will benifit the cmpany in future , it should be capitalised

I agree with Koushik