Treatment of website development cost
This query is : Open
Querist : Anonymous
Querist :
Anonymous
(Querist)
25 May 2012
Friends
my client developped a website during year 2011-12. as his main revenue generation is wholy from this website, he will start earning revenue from the middle of 2012-13. my query is whether said website development cost is a revenue or capital in nature in 2011-12. if it is a capital , under which it should be grouped i.e. software or intangible assets.
my client developped a website during year 2011-12. as his main revenue generation is wholy from this website, he will start earning revenue from the middle of 2012-13. my query is whether said website development cost is a revenue or capital in nature in 2011-12. if it is a capital , under which it should be grouped i.e. software or intangible assets.
CA PARTH SHAH
(Expert)
27 May 2012
AS PER AS 26, SOFTWARE DEVELOPMENT COST SHOULD BE CAPITALISD IF THERE IS SURETY THAT OF FUTURE ECONOMIC BENEFIT. ACCORDING TO YOU, REVENUE WILL BE GENERATED FROM MIDDLE OF 2012-13, THE DEVELOPMENT COST SHOLD BE CAPITALISED IN 2011-12, AND SHOULD BE CLASSIFIES AS INTANGIBLE ASSET
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
- Query on effect of registration of property
- GST on reimbursement of expenses
- Visiting card purchase
- Due date for filing return for the partner in partnership subjected to Tax Audit
- Goodwill transfer of deceased father’s firm – ICAI applying a 27.04.2026 cut-off to the 3 year limit
- Whether output tax is taken credit by purchaser
- Additional trade name
- Number of years as per AS amortisation of Goodwill
- Wrong CMPo8 file
- Equity Share Sale and Purchase
- Foriegn assets disclosure
- Classification of income of P Ltd company as business or profession
- Opting out" of regime provided under subsection (1A) of Section 115BAC but Form 10IEA is not filed.
- "Please ensure that the Total of the Deductions u/s 54F match the same in Table D in Sch CG"
- Need to correct "Whether it is last installment " response in Form 26 QB
- " Income from House Property " in joint names of co-owners
- REGARDING TDS RETURN OF FORM 27Q
- Notice under e-Verification Scheme
- GST demand notice for ITC reversal against exempted supply.
- RCM ON SECURITY CHARGES FROM INDIVIDUALS
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
