19 June 2010
My query is that, if we received central Government subsudy in respect of term loan then how we can recognise this transaction in the books of account under which group the subsidy is come.
19 June 2010
If one received subsidy from the governement then one can treat subsidy as follows If subsidy is related to fixed assets then one should reduce the cost of assets up to the extent of subsidy or if it is given for any business or generally then it should be considered as income as indirect income
19 June 2010
The Government subsidy towards term loan shall be credited to term loan account and normally the Bank which has sanctioned the term loan receives the subsidy and credits the same in your loan account.
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