Section 115jb
This query is : Resolved
Querist : Anonymous
Querist :
Anonymous
(Querist)
07 May 2014
Hello all
We have a client who generates electricity on behalf of state electricity board. our client pays tax as per MAT. the MAT is reimbursed by the state board. Now how to treat this MAT reimbursement in books of accounts? Will it be income? and what can be entry to be passed? Plz reply its urgent
We have a client who generates electricity on behalf of state electricity board. our client pays tax as per MAT. the MAT is reimbursed by the state board. Now how to treat this MAT reimbursement in books of accounts? Will it be income? and what can be entry to be passed? Plz reply its urgent
07 May 2014
theoretically it should be accounted for as income only.
entry should be:
Bank A/c Dr
To Subsidy from electricity Board A/c
(this is based on the assumption that money received from govt, not in nature of capital subsidy should be considered revenue)
entry should be:
Bank A/c Dr
To Subsidy from electricity Board A/c
(this is based on the assumption that money received from govt, not in nature of capital subsidy should be considered revenue)
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