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Business Application treatment

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rits

Student CA Final

98 Points Posted on 04 May 2023

My client is a private Limited company.
its Business is being operated from an Application software which can be downloaded from play store by users.
so cost of such application making is to be treated as direct expense or consider this application as Fix asset and capitalise all expenses relating to application development.
pls reply

Replies (3)

Quick Summary

This discussion explores how a private limited company should treat the costs associated with developing a business application available on the Play Store. The core question is whether these costs should be expensed directly or capitalised as a fixed asset. One perspective suggests it's a direct business expense for the developer, as it facilitates the business operations.