Fixed asset
This query is : Resolved
14 March 2013
Sir,
Accounting S/W purchased for the firm or company should be recorded as exp of that year of as a fixed asset?
Accounting S/W purchased for the firm or company should be recorded as exp of that year of as a fixed asset?
Dintakurthi Tirumala
(Expert)
14 March 2013
If newly purchased software then it is intangible fixed asset. In case you paying annual renewal fee of software then it is expenditure.
However according to the companies act any fixed asset which is purchased during the year with the cost of Rs.5,000 or less then such amount can be full written of to the Profit and loss account as depreciation in the year of purchase(i.e 100% depreciation allowable) i.e indirectly it would be treating it as expenditure.
OM SAI SRI SAI JAI JAI SAI
However according to the companies act any fixed asset which is purchased during the year with the cost of Rs.5,000 or less then such amount can be full written of to the Profit and loss account as depreciation in the year of purchase(i.e 100% depreciation allowable) i.e indirectly it would be treating it as expenditure.
OM SAI SRI SAI JAI JAI SAI
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