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Interest Subsidy

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(Querist)
15 July 2011 how should the interest subsidy on term loan received by a textile mill under Technology Upgradation Fund (TUF) be accounted ?
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C A S.S.Agarwal, M.Com.,LL.B,

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C A S.S.Agarwal, M.Com.,LL.B, (Expert)
15 July 2011 This the subject matter of State allowing interest subsidy to the units which are set in a particular state and in particular area. At the time of setting up the unit you must have seen the Industrial Policy of the State Government. Accordingly you have to apply to the State concerned finance department to allow interest subsidy.
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