tratment of software during tax audit

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..... tratment of software during tax audit
Query (Issue) Started By: - RISHABH KHANDELWAL Dated:- 26-8-2011 Last Reply Date:- 27-8-2011 Income Tax
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Income Tax
Purchasing a tally sof .....

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..... tware worth rs. 12000 during tax audit what treatment will be done? 1) wheteher shown in repair & maintenance ac/c 2) w2hether shown in fixed assets a/c. Reply By DEV KUMAR KOTHARI: The Reply: Wh .....

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..... o is purchasing software a CA or a business unit? What do you mean during tax audit- is it for purposes of tax audit or specifically during course of tax audit t overcome typical problems? Softwar m .....

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..... ay be capitalized under head computers and software. For tax purpsoes rate of deprecaiton is 60% ( half will be allowed if used for less than 180 days) . In case of replacement, one can treat it as re .....

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..... venue expenditure but it may involve litigation, becasue repalcement is also enerally with further advanced softwre. In case of crash of computer, and then replacement, it may be regarded as revenue e .....

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..... xpenditure. Do not go for litigation for small sums. For examination purpose better you treat it as part of block of asset.
Discussion Forum - Knowledge Sharing .....

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