capital subsidy
This query is : Resolved
16 December 2009
can capital subsidy received in respect of an asset in a year be deducted over the years from the cost of the asset?
please refer any case law if any?
please refer any case law if any?
16 December 2009
Refer AS-12 Accounting for Government Grants.
If capital subsidy is received which is related to depreciable fixed assets (generally it is so); then either it can be fully deductible from the cost of the asset
or
Capital subsidy may be treated as deferred income. This income is taken on some rational basis i.e. proportioning it during the useful life of the asset. Hence you can take this option.
CA Rakhecha,Surat
If capital subsidy is received which is related to depreciable fixed assets (generally it is so); then either it can be fully deductible from the cost of the asset
or
Capital subsidy may be treated as deferred income. This income is taken on some rational basis i.e. proportioning it during the useful life of the asset. Hence you can take this option.
CA Rakhecha,Surat
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- Gst registered proprietorship firm
- TDS Challan - change of FY 2025-26 to TY 2026-27
- Price inclusive or exclusive of GST while made entry in P& L Account
- AUDITOR APPOINTMENT FOR THE YEAR ENDING MARCH 27
- Minimum tax payable to file Updated return
- TDS on Fixed Assets purchased
- TDS on purchase of under construction property from a reseller
- GST Intimation due to Government took possession of Business Premises under PPE Act
- GST ISSUE OF INPUT AND OUTPUT GST
- Change Of Karta In Case of Death
- How to Handle Active E-Invoices in GST Portal Deleted from Tally?
- IMPORT PURCHASE ENTRY PASSED IN BOOKS OF ACCOUNT
- FAST DS 26 Undisclosed Foreign Asset Disclosure Scheme 2026
- Starting trading business
- Regime change
- Goods sold but invoice not issued
- Tally: Imported bank entries do not show up in manual reconciliation
- Sales of goods of amount Rs97 lakhs to a party
- Confused About My Career After 12th — Cyber Security, AI or Finance? Need Guidance
- FAST-DS 2026 Under Tax Law - No recourse or support for person declaring via this scheme?
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
