Hey
There is an upgradation of software from one version to another version, which involves huge expenditure. Can the upgradation of software be construed as improvement and could it be capitalised in the books of accounts as per AS-26?? Is there any tax impact due to this??
DEAR KATHIK,
DEFINATELY U CAN CAPITALISE THAT AMOUNT AS PER REQUIREMENT OF AS 26 INTANGIBLE ASSETS. U CAN GET THE DPRECIAITION BENEFIT UNDER INCOME TAX ACT @ 60%.
REGARDS,
MANOJ
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