Govt grants

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Zohar Rangwala

Zohar Rangwala (Querist)
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16 May 2013 Where would govt grants/subsidies be included in cost sheet preparation

CMA Ramesh Krishnan

CMA Ramesh Krishnan (Expert)
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16 May 2013 What Grant you are receiving?. whether it capital nature or other?

Zohar Rangwala

Zohar Rangwala (Querist)
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17 May 2013 what if it is capital nature
and what if it is others
i want to know the treatment in the cost sheet preparation

Thanku

CMA Ramesh Krishnan

CMA Ramesh Krishnan (Expert)
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17 May 2013 Capital nature grant means which received in aid of capital expenses. such as cash no question of come in to cost sheet

In case of grant in aid of revenue nature also no need to consider in cost sheet, cost sheet represents the cost of the product or service, so after arriving the cost sheet and cost, in place of considering revenue or sale the same grant can be considered

C A S.S.Agarwal, M.Com.,LL.B,

C A S.S.Agarwal, M.Com.,LL.B, (Expert)
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04 July 2013 Govt. is 2 types of grant one is Capital grant and the other is revenue grant.
Capital Grant received is to be deducted from the Capital expenditure incurred by you and then depreciation is to be charged.
In case of revenue grant it is to be credited to the P & L A/c or directly credit to the expenses against which grant is received.

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