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A producer company received a government grant to purchase fixed assets. They are now facing a dilemma regarding depreciation: charging depreciation on the asset's value might prevent future tax differences from being set off, potentially creating a permanent difference on the balance sheet. This query seeks help to resolve this accounting and tax complication.

SHIV KUMAR

SHIV KUMAR (Querist)
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21 September 2023 a govt grant of INR 30 lack received in FY 22.23 to a producer company for purchase fixed assest now fix assest pirchased with gst 18% now the fixed assest value in the balance sheet is 2542372.88 now we are apply as for grant sattlement which dep set off with deff grant now the problem is if we charged dep on 25 lakh assest than in the future the tax diff will not be set off will you please help to resolve this??