dear colleagues,
tally software per depreciation rate kya hai?? or tally software ko fixed assets me show karna correct rhega na?
regards,
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Tally software depreciation rate??
Replies (8)
Quick Summary
For software, rate of depreciation is 40% under IT Act.
Initial purchase of software is an asset. Yearly renewal is an expense.
40% Depreciation
Ohhk thanks a lot Poornima Mam & saurav sir
It should charged to p&l since we usually buy only a yearly license
Yearly renewal cannot be done without buying the software initially.
Does the license agreement stipulate two sets of payment i.e., initial software purchase and yearly renewals?
if so, what part of the initial cost is attributable to usage fee for the first year. such amount must be brought to p&l. only that part which is for one time fee for obtaining software should be depreciated
if so, what part of the initial cost is attributable to usage fee for the first year. such amount must be brought to p&l. only that part which is for one time fee for obtaining software should be depreciated
Yes you're right.
If its a yearly subscripttion you can charge it P&L. You may also calculate prorata and put some amount in prepaid if required.
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