Accounting treatment of licence fee for 10 months
This query is : Resolved
13 April 2013
Dear Frnds,
Our Company Providing Real Estate Services, we Facilitates our customer to pay online installment, that requires payment gateway software, we have purchased the license from software company for 10 months (Payment Gateway Software) and pay RS. 10 Lac to software Company , please advice whether it is maintenance or intangible Asset or any other treatment
Thanks in Advance
Our Company Providing Real Estate Services, we Facilitates our customer to pay online installment, that requires payment gateway software, we have purchased the license from software company for 10 months (Payment Gateway Software) and pay RS. 10 Lac to software Company , please advice whether it is maintenance or intangible Asset or any other treatment
Thanks in Advance
13 April 2013
According to as-26 it should be an intangible asset you will write off as per as-26
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10 July 2013
Any software which has a life of less than 2 years it is to be written off as revenue expenditure. ITAT Mumbai has already decided this issue for use of dongal and payment of licence fee is in no manner a capital expenditure and accordingly it is to be treated as revenue expenditre
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