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Nbfc - calculation of net owned funds

mohit pathak (Learner) (396 Points)

29 August 2018

Dear Fellow,

Should website under development be considered as an Intangible asset for the purpose of calculation of Net Owned Funds of an NBFC?

Please provide references.

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3 Replies

Ruchika Somani (Coaching and Practice in Tax Audit Law.) (4429 Points)
Replied 29 August 2018

Originally posted by : mohit pathak
	Dear Fellow, Should website under development be considered as an Intangible asset for the purpose of calculation of Net Owned Funds of an NBFC? Please provide references.

Yes.

No reference but since that software development cost is added in asset which is intangible so yes it must be considered in calculation

mohit pathak (Learner) (396 Points)
Replied 29 August 2018

Thank you for your response,

But when the asset is not there should it be considered as an asset?

ref:-

In Schedule 3 we are required to show it as 'Intangible asset under development' instead of as an addition to 'Intengible asset'. Means it is different from Intengible asset. and no depreciation is allowed on these assets.