Ragarding maintenance of books of accounts

We have a Partnership firm doing Software Business. We have maintained a web application cum mobile app from outside vendor on some fixed cost and provide the same to schools on some monthly or annual cost for use.

Question is:

1. Is purchase cost of web application cum mobile app is a fixed asset or purchase for our books?

2. We are issuing bills to our parties by mentioning web application cum mobile app charges for the month of ___ of for year financial year _____. Is it sales for our books or treated as Professional Income.

3. If it is treated as Professional Income then how we make our books of account and submit ITR under which head.

 

 

Replies (1)
1. it's classifiable under intangible asset
2. you are allowing your software to be used for a certain charges, these charges will constitute your sales turnover.
3. file itr3 or itr4

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