Subsidy on machinery

Save Share

This query is : Resolved

vijaykumar (Querist)
Follow

26 July 2011 sir, one of my client gets subsidy from govt for machinery , our client purchased machinery last 2 years back and depreciation claimed as per income tax act but this year he gets subsidy what is the treatment and i suggested that deducted the machine value those subsidy but i have a dough about depreciation , i.e. if he gets subsidy before sept what is the depreciation taken i.e. opeing value or after subsidy value please suggest me as early as possiable

CA PARAS BAFNA

CA PARAS BAFNA (Expert)
Follow

26 July 2011 Suppose WDV as on 1.4. 2010 of Machine is 250006
Subsidy received 50006
Charge depreciation on the Balance 200000
Question of more or less than 180 days of use arises at the time of addition.

vijaykumar

vijaykumar (Querist)
Follow

27 July 2011 thanks sir for replay and i am satisfied with your suggestion

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now