Website Charges...Urgent Sir!!!

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Rajesh (Querist)
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04 September 2010 Dear Experts,
Creation of website....Charges incurred for this should be capitalised or not in case of a private limited company?
If yes then under which head (class of asset) i have to capitalise?
With regards,
Rajesh.

CMA Ramesh Krishnan

CMA Ramesh Krishnan (Expert)
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04 September 2010 It is not fixed asset. but this expenses can be defferred and charge off 3 to 5 years or resonable period

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Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)
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04 September 2010 Expenditure on development of website with a view to disseminate information about assessee's business activities amongst its clients is revenue expenditure eventhough resulting in enduring benefit. Mere enduring benefit, dehors any accretion to fixed capital, would not make an expenditure a capital expenditure.
Citation :- CIT Vs Indian visit.com (p) Ltd (2008) 219 CTR (Del) 603.

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