Depericiation on windmill

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RAVINA VATS (Querist)
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18 September 2013 i hve a query abt dep. on windmill costing 300 lakhs. subsidy from gov. received of 15 lakh on installation of windmill. Now whether we charge dep. on 300 lakh or on 285 lakh.
plz resolve it

CS,CA F,Numrologi TusharSampat

CS,CA F,Numrologi TusharSampat (Expert)
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18 September 2013 As per AS 12 and AS 10 the cost of asset shall be reduced when the entity is receving subsidy.

so in your case u should charge dep on 300 lakhs -15 lakks= 285 lakhs.

RAVINA VATS

RAVINA VATS (Querist)
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18 September 2013 okk sir
thanks a lot
wat happen if entity receive subsidy at the end of year

CS,CA F,Numrologi TusharSampat

CS,CA F,Numrologi TusharSampat (Expert)
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18 September 2013 the ans remains the same time will not change the accounting treatment the imp point is subsidy in reality should be received at any time by the entity.

RAVINA VATS

RAVINA VATS (Querist)
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18 September 2013 ok sir
n once again thanks alot

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