Fixed Asset
This query is : Resolved
26 November 2010
My point was Software purchased of Rs.7.18 lakhs debited to Computer Consumables : Softwares purchased debited to "Computer Consumables" instead of as Computer Software (Intangible Asset covered under AS- 26).
But manager's response was
It is a computer application software and right to use is given and not the right to ownership. Hence it is a revenue expense and accordingly charged off. The life of every software version is very shot till the new one hits the markets, at that time such license becomes obsolete.
Plz tell me what is right ?
But manager's response was
It is a computer application software and right to use is given and not the right to ownership. Hence it is a revenue expense and accordingly charged off. The life of every software version is very shot till the new one hits the markets, at that time such license becomes obsolete.
Plz tell me what is right ?
26 November 2010
Pl see the link https://www.caclubindia.com/judiciary/computer-software-revenue-or-capital-expenditure--352.asp
However my understaning is for accounting purpose AS 26 may be followed and for taxation treat as revenue expenditure.
However my understaning is for accounting purpose AS 26 may be followed and for taxation treat as revenue expenditure.
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