dep. on software

This query is : Resolved

mayur (Querist)
Follow

04 January 2010 what will be the rate of depreciation on software?
Is it 25% or 60%
which will be most approoriate answer plz?& explain

Ghanshyam T Jha

Ghanshyam T Jha (Expert)
Follow

04 January 2010 Depreciation rate will be 60% as per Income Tax, bcoz Computers including computer software and computer software means any computer programme recorded on any disc, tape, perforated media or other information storage device.

Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)
Follow

05 January 2010 Another view of the High Court is given below.
Payment made for purchase of software,though is an enduring benefit,does not result in acquisition of any capital asset and it merely enhances the productivity or efficiency and hence, has to be treated as revenue expenditure.
CIT Vs. Southern Roadways Ltd (2008) 304 ITR 84(Mad).

Ghanshyam T Jha

Ghanshyam T Jha (Expert)
Follow

05 January 2010 I agree with you but that decesion was taken on upgradation of Computer Software and the finding of fact was that the expenditure was incurred only for improving the efficiency of the existing system.

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now

Join the CA Students WhatsApp Community for ICAI Updates, Trending Courses & Notes!

Unanswered Queries

Popular
Recent

Trending Online Classes

Direct Tax Laws & International Taxation May 26,Sept 26 & Jan 27

CA Arvind Tuli

Enroll Now
Audit Fast Track Recorded Batch For May 26,Sept 26 & Jan 27

CA Aarti Lahoti

Enroll Now
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English

CA Bhanwar Borana & CA Shubham Keswani

Enroll Now

view all classess

Meet our CAclubindia PRO Members

Sapan Kumar Nayak

S D Kannan

giriswar

Vivekanand Sagar

eddanapudi murali

Subscribe Now

dep. on software

Trending Online Classes

Meet our CAclubindia PRO Members

Quick Links

Browse by Category

Latest Job Openings

Senior Executive

Manager- Finance and Compliance

GST CONSULTANT

GST CONSULTANCY

Accountant

CA Final

Article Assistant

Associate CA