Please Help: Revenue exp. Or capital exp.
Posted Date : 11-Jul-2011 , 03:20:29 pm | Posted By: TUSHAR
Category :
Income Tax | Answers :
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Comments :
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Mr X is a practing CA and purchase a software of TALLY on 30/6/2011 and install the software in his computer. He starts using the software from 1st April 2012. Discuss the depreciation allowed to Mr. X in view of PGBP... |
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Answers:
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 Answer by: PRIYANKA |
| Yes , this would be treated as revenue expenditure and taken to p&l A/c, point of deprectiation does not arise.
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| Answer by: CA. Sachin Data |
| It is non- capital expenditure hence no depeciation allowed.
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| Answer by: CA. Sachin Data |
| Software is a tangible asset having a limited life as it gets obsolete due to technical changes. Hence, it is a item of revenue expenditure.
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| Answer by: CA VIKAS JAIN |
| this should be charged against revenue and not be capitalised. further more the expense to be capitalised, the monetory limit of expenditur should be considered. for example instead of tally suppose the case will be installing a SAP then that expenditure certainly be capitalised.
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| Answer by: CA Richa Gupta |
| This expense is inccured for his operations that y this vl b charged as revenue exp. no dep will be calculated on that amt.
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| Answer by: Vikash Kumar Jha |
| You have not explain monetary value and duration rlated to software. Because it will be important aspect to judge wether it will be capitalise or not. Without specific information you can take it as a revenu expenditure.
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| Comments |
| Posted By : CA. Sachin Data |
12-Jul-2011, 05:45:19 |
| Software is a tangible asset having a limited life as it gets obsolete due to technical changes. Hence, it is a item of revenue expenditure. |
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| Posted By : PRIYANKA |
12-Jul-2011, 05:22:09 |
| Yes , this would be treated as revenue expenditure and taken to p&l A/c, point of deprectiation does not arise. |
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| Posted By : Saurabh Mittal |
11-Jul-2011, 05:11:26 |
| as per recent case of supreme court software purchase treated as revenue expenditure not a capital expenditure so not possible for claiming depreciation on tally software. |
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| Posted By : Saurabh Mittal |
11-Jul-2011, 05:11:26 |
| as per recent case of supreme court software purchase treated as revenue expenditure not a capital expenditure so not possible for claiming depreciation on tally software. |
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