Fixed Assets

Software is an intangible fixed assets

intangible fixed assets

intangible fixed Assets....please see AS 26...

no yaar as per my experience if the concern has paid for software against proper billing , the software should be capitalized under fixed assets.

As per IT depreciation table " computer including computer software" is allowed 60% depreciation as a fixed asset. 

computer software for a computer controlled machine tool that cannot operate without that specific software is an integral part of the related hardware and it is treated as a fixed asset. The same applies to the operating system of a computer. Where the software is not an integral part of the related hardware, computer software is treated as an intangible asset.

yes software is an intangible fixed asset ..and depreciated @ 60% as per the depreciation table

can u correct me if a company has made pmt for getting prepared software to run videos in lcd screens installed in buses, it be tangible asset or intangible, ie it be capitalized or not.

It will be capitalised, be it an intangible asset or a tangible one.

Originally posted by : FATEMA
	computer software for a computer controlled machine tool that cannot operate without that specific software is an integral part of the related hardware and it is treated as a fixed asset. The same applies to the operating system of a computer. Where the software is not an integral part of the related hardware, computer software is treated as an intangible asset.

i completely agree with this reply. if it is treated as fixed asset, it will be charged at 15% pa for depreciation. if it is treated as intangible asset, it will be charged at 60% pa.

What about anti virious software for only one year licence? still you all will Capitalised? or treating it as licence agreement and charged to revenue.

anti virus software with one year licence is a revenue expense, as neither its benefits  accrue for more than one year nor it is acquired to help production or generating revenues. so it can't be treated as intangible asset.