treatment of cost of licence for electricity company

Cost of license fee is not to be included while calculating Capital base..................

Thanx for replying!

But why? isnt it like a preliminary expense?doesnt  it  fall on the assets side of a company's balance sheet?and we do include preliminary expenses also while calculating the capital base..

I was told that : 

" If it's an annual fee, it's an expense. If it's a one time fee, or a fee for a number of years, and it's transferable (ie: they can sell it to someone else) then it would be an asset to be depreciated over it's life. "

Shall we follow this rule??? 

subramanyam