Capital or Revenue Exp.
This query is : Resolved
Pawan Mittal
(Querist)
24 March 2008
In the case of software company. They spend 5.00 cr towards salary to IT staff but software could be made in the previous year.Therefore, no sale during the year.
Should company claim loss
or
should paid amount is WIP
or
Defered Expenses
what is correct treatment of exp.
Should company claim loss
or
should paid amount is WIP
or
Defered Expenses
what is correct treatment of exp.
Vikas Garg
(Expert)
24 March 2008
The salary expenses should be directly charged to P & L account as the company is a software developing company and the software development is done in the normal course o the business of the company. It does not matter whther the software was fully developed in that year or not. So, charge it off.
Pawan Mittal
(Querist)
24 March 2008
can we consider as WIP
or
Defered Expenses
or
Defered Expenses
Pawan Mittal
(Querist)
24 March 2008
can we consider as WIP
or
Defered Expenses
or
Defered Expenses
24 March 2008
CHARGE TO PROFIT AND LOSS ACCOUNT
CA Praveen Chopra
(Expert)
24 March 2008
Mr.Mittal,there is no question of WIP as no work is going on right now.The work of developing this particular software has come to an end as you told that software could not be developed. So it should be directly charged to profit & loss account rather.
MANAS ROUT
(Expert)
24 March 2008
YOU HAVE TO CHARGE DIRECTLY TO P& L ACCOUNT FOR THAT YEAR.
CA Kamlesh Dama
(Expert)
24 March 2008
charged to the P&L
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- EPF ECR NEW FILE SEP 17TH 2026
- How to Handle Active E-Invoices in GST Portal Deleted from Tally?
- Oct 2025 Invoices
- Capitalgain tax purposes for valuation report compulsory
- Under marginal scheme
- SECTION 393(3) TAX ON CASH WITHDRAWAL
- GST on Renting godown to KFCSC for Storage of Raagi
- Import of Software Service.
- TAX AUDIT ON PROFESSIONAL INCOME
- Clarification Requested: Gift → NRO → NRE → Overseas Transfer - USA/CANDA (FEMA & Tax Compliance)
- FAST DS 26 Undisclosed Foreign Asset Disclosure Scheme 2026
- Regime change
- Goods sold but invoice not issued
- Tally: Imported bank entries do not show up in manual reconciliation
- Sales of goods of amount Rs97 lakhs to a party
- Confused About My Career After 12th — Cyber Security, AI or Finance? Need Guidance
- FAST-DS 2026 Under Tax Law - No recourse or support for person declaring via this scheme?
- Guidance Needed: Linking Multiple Form 26QB Payments and Responding to ITD Defaulter Notice
- How to pay remaining amount of TDS after due date?
- Resigning a auditor from the company for misconduct
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
