Please Help: Related to Accounts

Posted Date : 21-Jan-2015 , 12:50:25 pm | Posted By RISHI RAJ SINGH

Is Software renewal is considered as purchase

Category : Accounts | Answers : 0 | Comments : 4 | Hits : 232

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Rajan Shivbilash Ram

02-Feb-2015 , 05:52:49 pm

See (1)If amount paid for maintenance then it will be expense (2) when its renewed for increase the capacity of software its considered as CAPEX

If software was purchased in earlier year and renewal fees or subscription was paid, expenditure would be revenue expenditure. As in the case of Sergi Transformer Explosion Prevention (P.) Ltd. V/s DCIT {[2014] 47 taxmann.com 370 (Delhi - Trib.)} was decided in favour of assessee.