Tax alert: Payment for premature termination of contract is allowable, non- compete fees eligible for depreciation has been saved
Article
Tax alert: Payment for premature termination of contract is allowable, non- compete fees eligible for depreciation
1 November 2023
The Bombay High Court has held that compensation paid on premature termination of contract is allowable revenue expenditure. Further, the sum paid as non‑compete fees is capital in nature; it is an intangible asset eligible for depreciation.
