Treatment of purchase of accounting software

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Shyamsingh Rajput (Querist)
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26 April 2012 Respected Members,

My aseesee has purchased an accounting Software in year 2011-12 for Rs. 80000/-. Can he Charge it as the revenue Expenditure? and can you please give me the reason for such treatment.

shyamsingh d rajput

Dintakurthi Tirumala

Dintakurthi Tirumala (Expert)
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26 April 2012 It is intangible fixed asset. So it is not charge as revenue expenditure. However you will be eligible to deduction on it. As per it act the ROD is 60%.

OM SAI SRI SAI JAI JAI SAI

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Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)
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26 April 2012 Vexed issue. Please decide after reading the decisions in http://www.cainindia.org/news/3_2008/expenditure_on_software_is_of_revenue_nature_special_bench.html

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