urgent

This query is : Resolved

its Neha (Querist)
Follow

12 December 2009 can copyright be amortised @ 90% or fully in the year of purchase if it has one year life? which section of IT act deals with the same?

CA SURENDRA KUMAR RAKHECHA

CA SURENDRA KUMAR RAKHECHA (Expert)
Follow

12 December 2009 In tax law, amortization refers to the cost recovery system for intangible property. Although the theory behind cost recovery deductions of amortization is to deduct(absorb) the original cost in a systematic manner during the useful economic life so as to reflect its consumption, expiration, obsolescence or other decline in value as a result of use or the passage of time, many times a perfect match of income and deductions does not occur for policy reasons.

The facts given are not clear. It cannot be understood that useful life is only one year of a copyright. Because rights of copyrights remains in force till the life time of author plus 60 years after his death.

If you have taken a license of a copyright; the useful life of which now remains only for one year; then definitely you can charge it to profit and loss account.

To avoid litigation; you can sell the rights to a publisher at a nominal price.

Ca Rakhecha
Surat

hshivakumar

hshivakumar (Expert)
Follow

12 December 2009 it is intangible assets and you can claim dep @ 25% pa.

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now

Join the CA Students WhatsApp Community for ICAI Updates, Trending Courses & Notes!

Similar Resolved Queries

Unanswered Queries

Popular
Recent

Trending Online Classes

Direct Tax Laws & International Taxation May 26,Sept 26 & Jan 27

CA Arvind Tuli

Enroll Now
Audit Fast Track Recorded Batch For May 26,Sept 26 & Jan 27

CA Aarti Lahoti

Enroll Now
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English

CA Bhanwar Borana & CA Shubham Keswani

Enroll Now

view all classess

Meet our CAclubindia PRO Members

Shakthi

CA Satyen Sharma

madhuseshu yathirajam

Soumitra Patra

Vinod Patil

Subscribe Now

urgent

Similar Resolved Queries

Trending Online Classes

Meet our CAclubindia PRO Members

Quick Links

Browse by Category

Latest Job Openings

Senior Executive

Manager- Finance and Compliance

GST CONSULTANT

GST CONSULTANCY

Accountant

CA Final

Article Assistant

Associate CA