Web site mg expense

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This query is : Resolved

Jay Parekh (Querist)

23 February 2013 A Company has formed its website and has paid 19000 Rs for it.. Under what head this expense should be charged???
Can we charge it as Advertising
expense????

@VaibhavJ

@VaibhavJ (Expert)

23 February 2013 Hi,

No its not advertisement exp. Separate head to be created for the same & shown as Website Registration & Development charges in my view.

Thanks!!

Jay Parekh

Jay Parekh (Querist)

23 February 2013 thank you...!!!!

Nikhil Kaushik

Nikhil Kaushik (Expert)

23 February 2013 I don't see any harm in charging it off to advertising. It substantial portion of website is an advertisement of company's work only.

Jay Parekh

Jay Parekh (Querist)

24 February 2013 ya i also think the same that it is for advertising purpose only.

CA PARAS BAFNA

CA PARAS BAFNA (Expert)

24 February 2013 The web-site expenditure is whether a capital or revenue has to be decided from the manner in which the website is used. Sometimes web sites provide merely information about the product or services. In such cases it can be treated as revenue expenditure.
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However, when the web-site is effectively used for business transactions and where it is difficult to deny that its use results in an enduring benefit, then the expenditure may be treated as Capital Expenditure.
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