Capitilisation of fixed asset
This query is : Resolved
Querist : Anonymous
Querist :
Anonymous
(Querist)
24 April 2013
A COMPANY IS PURCHASE ON SOFTWARE FOR RS 13500 . SO COMPANY CAPITALIZED ON SOFTWARE AS A FIXED ASSET OR NOT IF COMPANY IS CAPITALIZED THEN THE RATE OF DEPRECIATION OR IF NOT CAPITALIZED THEN WRITTEN OFF IN P & L SO PLEASE ADVICE.
24 April 2013
as per AS 26, software is intangible asset.
book them as asset.
such assets are never depreciated but Amortized.
amortization period in case of software is 3-5 years, normally it is 10 years for intangible assets. para-63
amortisation method--
in proportion of future benefits
or
SLM method. (simple as in case of DEP)
book them as asset.
such assets are never depreciated but Amortized.
amortization period in case of software is 3-5 years, normally it is 10 years for intangible assets. para-63
amortisation method--
in proportion of future benefits
or
SLM method. (simple as in case of DEP)
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
- About TDS & Income Tax
- Tax on Deemed Capital Gain
- Scrutiny and reopening of past returns
- F & O PROFIT REPORTING FOR AY 2026-27
- Booth for sales promotion
- Type of Capital Gain
- Regarding ITR filing with more value than showing in AIS/TIS
- ASMT-10 received from A O
- Rental income of jointly held property
- Accounting with Claude
- Difff in ais receipts and gst turnover
- ITR-3 File/Error Found
- Exiting partner in partnership firm in gst portal
- Taxability of credit in canara bank ET & T section (NRO)
- Consequences of Non-Deduction of TDS under Income Tax???????????????
- TDS on Rent received on redevelopment of building
- Indian IT Portal issue in computing tax as per UK-India DTAA
- Capital Gains on sale of residential flat
- Upload Level ValidationITR3Category of Defect B/D
- PF Taxable Income
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
