Capitalisation of software

subramanyanadig (Accounts officer)     24 August 2019

Accounts officer 
 33 points

| My Other Post

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


sanket bohra   24 August 2019

sanket bohra

 4 points

View Profile | My Other Post

TDS are not applicable on software purchase and also can't claim depreciation


sabyasachi mukherjee   16 September 2019

sabyasachi mukherjee

 40 likes  1228 points

View Profile | My Other Post

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.

Leave a reply

Your are not logged in . Please login to post replies

Click here to Login / Register  

Popular Discussion

view more »