Capital Subsidy treatment..Urgent Sir!!
This query is : Resolved
09 August 2010
Dear Experts,
A firm has got capital subsidy for some of the purchase of its machines.
It was purchased for the fin. year ended 31.3. 2009.
But the subsidy is received on the fin. year ended 31.3.2010.
In such a case depreciation has been charged for the full purchase amount on the fin. year ended 31.3.2009.
Since the capital subsidy has been received only during the fin. year ended 31.3.2010 i will be able to deduct only in this year. While deducting should i have to deduct from the opening w.d.v. for the fin. year ended 31.3.2010 and depreciation has to be calculated only for the net amount. Am i right?
Thanks for the every one who replied.
With regards,
Rajesh.
A firm has got capital subsidy for some of the purchase of its machines.
It was purchased for the fin. year ended 31.3. 2009.
But the subsidy is received on the fin. year ended 31.3.2010.
In such a case depreciation has been charged for the full purchase amount on the fin. year ended 31.3.2009.
Since the capital subsidy has been received only during the fin. year ended 31.3.2010 i will be able to deduct only in this year. While deducting should i have to deduct from the opening w.d.v. for the fin. year ended 31.3.2010 and depreciation has to be calculated only for the net amount. Am i right?
Thanks for the every one who replied.
With regards,
Rajesh.
09 August 2010
I agree with you.However I am keeping this open for further opinion.
Message likes :
2 times
Dhirajlal Rambhia
(Expert)
04 August 2023
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