Capitalization of Certain Categories

Indian Accounting Standards 2333 views 2 replies

Please clarify whether these two itmes can be capitalized?

1. Purchse of new stabilizers for Air Conditioners. (Initially  stabilizer cost has been added to the value of A/c)

2. Tally accounting software purchased

 


 

Replies (2)

ya both would be capitalised , & sofwares comes into the category of computers & wud b eligible  for dep @ 60%

Both these items will be capitalized.

With regard to the stabilizer it varies on management policy.

It can be added to the cost or it can be shown as a seperate asset in the same block. But in the given case you can continue doing the same.

Now the software - when it is bought, its life is estimated to be more than a year, hence it should not be treated as revenue but CAPITALIZED.

But the 60% depreciation for the software is under the IT Act and it varies in the Companies Act.


CCI Pro

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register  

Company
24 May 2026
Accounts & Tax Executive

PARAS KHURANA AND CO

New Delhi

B.Com

View Details
Company
ARTICLESHIP 08 June 2026
Internal & Taxation Article

O P Bagla & Co LLP

New Delhi

CA Inter

View Details
Company
ARTICLESHIP 04 June 2026
Article

Rakhecha & Co.

New Delhi

CA Inter

View Details
Company
Featured 27 May 2026
Lead Conversion Executive / Sales Closing Executive

SMJ global advisors pvt ltd

New Delhi

B.Com

View Details
Company
12 June 2026
Accounts & Taxation Executive

Winshine Financial Services

Mumbai

CA Inter

View Details
Company
ARTICLESHIP 23 May 2026
Article Assistants

Acupro Consulting

Gurgaon

CA Inter

View Details
Company
Featured 28 May 2026
SEMI QUALIFIED/ CA DROPOUTS/ ARTICLES

T R SOOD & CO

New Delhi

CA Inter

View Details
Company
01 June 2026
Audit, Taxation & Compliance Executive

R P S K & Associates

Nashik

CA Inter

View Details