Anandana N (CA Practice ) (68 Points)
30 September 2013My client profit making company is due to get a grant from a US based fund. My query is
Is this allowed as per tax? Section applicable?
What is the procedure for the same?
Member
(Management)
(325 Points)
Replied 30 September 2013
Consider it as subsidy. What are the rules governing taxing of subsidies? The same would hold good for grants, in my view. Of course, if the whole transaction is viewed with suspicion by the Taxman, then it would not make any difference.
Anandana N
(CA Practice )
(68 Points)
Replied 01 October 2013
I dont think it would be treated as a subsidy. It is a profit making company why would it get a subsidy?
The FDI norms would be applicable.
CAclubindia
