depreciation on software

Income Tax Act - WDV Method - 60%

Companies Act - WDV - 40% & SLM - 16.21%

yeh... rates specified by bhagyesh is correct...

RATE OF DEPRECIATION. REFER TO POINT NO. 5 IN THE FILE.

is it not intangible assets?.rate specified by BHAGYESH is of tangible asset.

As per my knowledge Intangible asset does not include software.

Intangible asset include patent, copyright,trademark license,franchise or any other commercial right of similar nature.

softaware are

Income Tax Act - WDV Method - 60%

Companies Act - WDV - 40% & SLM - 16.21%

what is quoted by MD Raza above is correct.

thank you all

NO. IT WILL NOT BE CONSIDERED AS AN INTANGIBLE ASSET.  REGARDING RATE OF DEPN, THE RATE SPECIFIED BY BHAGESH IS CORRECT

in october month "chartered accountant' journal , one article called recognition of cost & revenue of computer software is published. in that author says softwares are not integral part of related hardware so its considered as intangible asset.. now i am agian confused ...

Cost of software comprises the part of software and hence the same should be capitalised. The reason behind  that software is purchased for use for long term purpose and provide long term benefit to the companybecause it is not possible for a company to change its software quickly. Hence value of software should be capitalised. I think ur doubt must be cleared.

Rate of Depreciation

Tax purpose  60%

Companies Act   16.21% (SLM) & 40%(WDV)

regards,

ratan

ratan sir my doubt is software is tangible or intangible asset .. please specify the section of the act

Dear Kaya,

Computer is treated as an intangible assets. I hv a attached file for your reference.

regards,

ratan

thank you sir . but can you please provied me the fullform of AASB

AASB Stands for Australian Accounting Standard Board.

regards,

ratan