Capital or Revenue Exp.
This query is : Resolved
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.
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.
24 March 2008
can we consider as WIP
or
Defered Expenses
or
Defered Expenses
24 March 2008
can we consider as WIP
or
Defered Expenses
or
Defered Expenses
24 March 2008
CHARGE TO PROFIT AND LOSS ACCOUNT
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.
24 March 2008
YOU HAVE TO CHARGE DIRECTLY TO P& L ACCOUNT FOR THAT YEAR.
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
- STCG....................................................
- Section 54F - Exemption on LTCG in 2026 for HP purchased in 2023
- Sales return eway bill
- AMOUNT RECEIVED UNDER COMPULOSRY ACQUISITION OF AGRICULTURAL LAND
- TAN for Partnership
- Free lancer income
- Is it compulsory to File 10E if Income including Pension Arrears is below 12 Lakh for the F Y 25 26
- Is E Way Bill Valid If Transport ID Not Mentioned in PART A But Vehicle details mentioned in PART B
- STCG FOR GOLD ETFs
- Suggestions required for income tax filing-software (FY 2025-26)
- Standard Deduction claim for EPFO Pension and ICICI Prudential Life Annuity
- Sales amount in Gstr1
- CG after sale of flat
- E Commerce GSTR1 & 3B how to file
- Nomination of Bank for refund in itr 2
- GST Cancellation without jurisdiction
- Legal Opinion on Registrar's Refusal to Investigate a Society for Non-Renewal and Non-Compliance
- GST Refund_RFD-01
- Form10BD was uploaded successfully without any Error but after 24 hours, Form10BE are not available
- Annexure B utility for GST Refund
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
