fixed Assets

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Querist : Anonymous

Querist : Anonymous (Querist)

10 March 2011 One of our client has develop
their web-site

web site exp amt rs 20000
how to treat it ?

Capital of Revenue Exp

Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)
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10 March 2011 Recognition of development costs:-

Required treatment- development costs should be recognised as an asset when they meet the criteria in paragraph 17 of IAS 9 and it is probable that these costs will be recovered. Such costs should be allocated on a systematic basis to future periods in accordance with paragraph 20 of IAS 9.

Eliminated treatment – the Exposure Draft will propose that development costs which meet the criteria in paragraph 17 of IAS 9 should not be charged as an expense in the period in which they are incurred”

(refer, The Chartered Accountant, September 1990)

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Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)
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22 March 2011 As per Income tax point of view, it is revenue expenditure.
Citation:- CIT Vs. Indian Visit.Com Pvt Ltd (2008)219 CTR (Del) 603.

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