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EXPENDITURE
ON ACQUISITION OF PATENT RIGHTS AND COPYRIGHTS
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Expenditure
on acquisition of Patent Rights and Copyrights [Sec. 35A]:
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Condition
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Description
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I
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The
know-how, secret formula, designs & specifications are either
Patent/ Copyrights.
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II
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Expenditure
is Capital natured and is incurred on acquisition of Patents &
Copyrights.
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III
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Such
Patents/ Copyrights are used for business/ profession of the assessee.
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IV
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The
Capital expenditure is incurred prior to 1st April’ 1998.
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If above conditions are satisfied then the total expenditure is
allowable as business expenditure in equal annual installments over a period
of 14 YEARS, from the previous year in which such rights were acquired.
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However if the above conditions are satisfied then deprecation
can be claimed on such capital expenditure.
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