Capitalisation of software

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Accounts officer
37 Points Posted on 24 August 2019
A firm has paid Rs.40 lakh as advance for purchase of software out of 60 lakhs, and supplier provided invoice for 40 lakhs, but software is not put to use. my question is
can we treat Rs.40 lakhs as asset as supplier provided the invoice and claim depreciation.
can we deduct TDS on 40 lakhs.

Thanks in advance
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On 24 August 2019 at 10:54 Report
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24 Points Posted on 24 August 2019
TDS are not applicable on software purchase and also can't claim depreciation
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On 24 August 2019 at 22:21
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19974 Points Posted on 16 September 2019
No tds to be deducted.
Treat as Fixed Asset as per norms laid down in schedule 3 of companies act 2013.
Disclosure requirement.
Main Head- Non Current Assets
SubHead- Tangible Fixed Asset.
provide depreciation - as per norms laid down
Schedule 2.
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On 16 September 2019 at 08:10

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