Tally Software - Asset or Expense

Save Share

This query is : Resolved

Quick Summary

When purchasing Tally Software, it's generally considered an intangible asset, allowing you to claim depreciation. Similarly, extended warranties purchased for items like laptops can often be capitalised as part of the original cost. However, there's also a view that extended warranties might be treated as revenue expenditure.

CA. Aditya Goel

CA. Aditya Goel (Querist)
Follow

27 July 2020 i have purchased Tally Software for INR 13k. Whether it will be an Asset (can claim depreciation as its an intangible asset) or its a spend to be charged to P&L?

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
Follow

27 July 2020 it will be an Asset (can claim depreciation as its an intangible asset)

CA. Aditya Goel

CA. Aditya Goel (Querist)
Follow

27 July 2020 Thanks
Also what about the additional warranty purchased for laptop ?
Purchased laptop on 1st July
Today purchased extended warranty for 4K
Can I capitalise it as well with the cost of laptop or should charge it to P&L ?

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
Follow

27 July 2020 Capitalise it as cost of laptop.