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Income Tax - Highlights / Catch Notes

Home Highlights July 2016 Year 2016 This

E-connectivity charges are revenue in nature as they do not ...

Income Tax

July 7, 2016

E-connectivity charges are revenue in nature as they do not result either in the acquisition of software by the assessee or in any enduring benefit to the assessee

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  1. Expenses incurred on up-gradation of software do not result into acquisition of any asset nor acquisition of enduring benefits as software become obsolete very quickly -...

  2. Nature of purchase of software - software purchased by assessee for ultimate export either as embedded software or as part of project undertaken by it cannot be...

  3. Nature of software expenses - these are towards payment for renewal of software which the assessee was using for client deliverables - software expenses are revenue in...

  4. Software development expenditure which was application software was revenue in nature - deduction allowed u/s 37.

  5. Software expenses - revenue v/s capital expenditure - software may be needed like raw material - computer software expenses were revenue in nature - HC

  6. Service charges paid on software development to DERPOL - expenses claimed by the assessee are of revenue in nature - AT

  7. Software consumable expenses – The expenditure was incurred for application software and not for system software – The software was not of enduring nature and would...

  8. Disallowance of software expenses - revenue or capital expenditure - payment was made for maintenance/hosting services not resulted in any enduring benefit and there was...

  9. Capital or Revenue expenses – The number of entries for purchase of software tools is running into 170 - thus, the expenditure incurred by the assessee was revenue in...

  10. Nature of expenses - Expenses incurred on Enterprise Resource Planning (“ERP”) and software expenses - revenue or capital expenditure - in today’s fast changing...

 

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