Computer software
This query is : Resolved
08 June 2013
Upgradation of computer software and purchase of computer software are treated as fixed asset or revenue expenditure under finance act,2012?????
Ganeshbabu K
(Expert)
08 June 2013
upgradation of software , purchase of licences and purchase of computer software are intangeble assets,
therefore, expenditure incurred on purchase of software/upgradation software should have been capitalised and amortised over their estimated useful life as per AS 26,
Reference
opinion given by icai commitee
https://220.227.161.86/eac/eacfinal/vol26/2.htm
therefore, expenditure incurred on purchase of software/upgradation software should have been capitalised and amortised over their estimated useful life as per AS 26,
Reference
opinion given by icai commitee
https://220.227.161.86/eac/eacfinal/vol26/2.htm
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08 June 2013
Agreed wiht the Expert, Upgradation of software is treated as Intangible Asset and It should be capitalised
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09 June 2013
i) O.K for accounting purpose.
ii) For income tax purpose treat as revenue expenditure.
Citation:-
a) CIT Vs. Southern Roadways Ltd (2008) 304 ITR 84(Mad).
b) CIT Vs. Asahi India Safety Glass Ltd (2011) (Del).
ii) For income tax purpose treat as revenue expenditure.
Citation:-
a) CIT Vs. Southern Roadways Ltd (2008) 304 ITR 84(Mad).
b) CIT Vs. Asahi India Safety Glass Ltd (2011) (Del).
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