first of all there would bw no tds on purchase of asset. if you have collected and remitted it to the software company then you can capitalise the asset at the total amount(including deduction).
only service charges paid by u for installation of assets would be liable to TDS if they exceed Rs.50000
27th January 2009 From India , Mumbai
28th January 2009 From India , New Delhi
so amt wuld not capitalize
29th January 2009 From India , Mumbai
TDS is deducted and deposited on behalf of vendor. The amount has to be deducted and paid to the government instead of vendor as per Income Tax Act.
Let us take a example of transaction where TDS is not applicable then the full amount would be capitalised.
Hence this is the same case here the amount is paid to the government instead. we have made the full payment for asset purchased. The cash ouflow goes to government isntead of vendor.
hope it will clarify your query.
19th May 2009 From India , Faridabad
When we purchase something from any vendor and also getting installation services from them then, We are taking two things from from
1. Material (Software which is Purchase - No TDS on this)
2. Services (Installation Charges - TDS should be deducted from this part of amount as it is a Contract for Services not a Purchase.
Now as per Your Query, You will Capitalise the amount of TDS deducted on the amount of services, But Sorry Dear Not on the Cost of Software.
21st June 2009 From India , Ambala
13th November 2009 From India , Pune