Query for software purchased.
This query is : Resolved
10 December 2015
Is there is limit of amount for capitalizing a software purchased that is intangible asset please answer with reasonn or AS
10 December 2015
Software purchased can be capitalized if it Exceed Rs.5000/- & above . Normally Less than Rs.5000/- not considered for asset write off in P & L A/c.
Annual Renewal Charges of Software not be capitalized.
Annual Renewal Charges of Software not be capitalized.
Message likes :
1 times
10 December 2015
Dear sir we purchased a Payroll attendanc
sofware but it is not working and the provider is not responding can we still capitalized it.becase there are no future economic benefit from this software.
sofware but it is not working and the provider is not responding can we still capitalized it.becase there are no future economic benefit from this software.
10 December 2015
what is the cost of software? if it is no future benefit you can write off.
10 December 2015
cost is 20000. if it should be write off then is amt play any role. iam asking this becase you asked for the cost.and sir is there any limit in any AS of any other act for recognizing iasset that u mentioned 5000
10 December 2015
to the extent your. Profit will be reduced. other wise you can claim depreciation number of years but in this case you will claim in this year .
10 December 2015
Thax sir but logic of 5000 i could't able to understand. Many people gives this limit but when i asked for where it is given i did't receive any suitable answer plsss clerify sir.
10 December 2015
Rs.5000/- will be company policy not by the Department , Each organisation limit the amount 5000 or 10000/- less than that they will write off as the value of asset is Meager . if you group as Fixed Asset you have to MAINTAIN Asset Register with Asset TAG Number.
it is company policy . no hard and fast rule .
it is company policy . no hard and fast rule .
10 December 2015
now cleared thank u sir.
10 December 2015
1. If the software is not working, it can be written off fully in the year of purchase.
2. For income tax purpose also, cost of software can be a revenue expenditure. citation:- CIT Vs. Asahi India Safety Glass Ltd (2011) 203 Taxman 277(Cal).
3. Rs. 5,000 concept is mentioned in schedule XIV (proviso to clause 8)of the Companies Act,1956.
2. For income tax purpose also, cost of software can be a revenue expenditure. citation:- CIT Vs. Asahi India Safety Glass Ltd (2011) 203 Taxman 277(Cal).
3. Rs. 5,000 concept is mentioned in schedule XIV (proviso to clause 8)of the Companies Act,1956.
Message likes :
2 times
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- Reopen of assessment proceeding
- Depreciation of fixed assets- coop housing society in mumbai
- TDS on Consultancy- Non DTAA
- Experts need help
- Rental income gst and it purpose
- Management System (IMS)
- EPF FULL & FINAL RULES IN 2026
- Query – TDS on purchase of land from NRI under Income-tax Act, 2025
- Eway bill generation from place other than registeted
- Condonation . E-Verification of last year return .
- Goods sold but invoice not issued
- Tally: Imported bank entries do not show up in manual reconciliation
- Sales of goods of amount Rs97 lakhs to a party
- Confused About My Career After 12th — Cyber Security, AI or Finance? Need Guidance
- STATUTORY AUDIT OF A SMALL PRIVATE COMPANY INCORPORATED ON 28.03.2025
- Guidance Needed: Linking Multiple Form 26QB Payments and Responding to ITD Defaulter Notice
- How to pay remaining amount of TDS after due date?
- Resigning a auditor from the company for misconduct
- RCM @ 5% on Hamali charges, Transport Charges, Unloading charges we take ITC or not
- CALCULATION OF DEFFERED TAX - OP BL IS DTL & CURRET IT DTA
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
