Treatment of anti virus software


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Querist : Anonymous

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Querist : Anonymous (Querist)
15 November 2014 my company has taken Anti virus software for 3 years , now my question is that as per income tax act it is treated as revenue exp.
so whether journal entry to be books of accounts passed
computer repair and maintenece A/C --Dr
to party A/c

or
computer repair and mainteneance A/C--dr
prepaid com, repair and main. A/C--Dr
To party A/c
please reply this question as per income tax act and as per Accounts also.

15 November 2014 It can be treated as revenue expence and no need to account as prepaid

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Querist : Anonymous

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Querist : Anonymous (Querist)
16 November 2014 dear ganeshbabu

just pass first entry in books of accounts .is correct or not.

16 November 2014 yES, FIRST ENTRY IS CORRECT


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