Subsidy on term loan
This query is : Resolved
Sankar Chakraborty
(Querist)
10 February 2012
Dear Experts,
We have a term loan (financial assistance) with SMALL INDUSTRIES DEVELOPMENT BANK OF INDIA and EMI’s are deducted every month (principal + interest). Now SIDBI has issued a letter, stating that our unit has been received CLCSS subsidy from Govt of India of Rs. 2.80 lac so then principal and interest amt reduced in our current month’s E.M.I
My question is what entry to be made for this subsidy in our books ?
We have a term loan (financial assistance) with SMALL INDUSTRIES DEVELOPMENT BANK OF INDIA and EMI’s are deducted every month (principal + interest). Now SIDBI has issued a letter, stating that our unit has been received CLCSS subsidy from Govt of India of Rs. 2.80 lac so then principal and interest amt reduced in our current month’s E.M.I
My question is what entry to be made for this subsidy in our books ?
Sankar Chakraborty
(Querist)
11 February 2012
why fixed asset ? i think 'subsidy' under indirect income
please give me understand
please give me understand
14 February 2012
Subsidy is not your revenue receipt its capital receipt.It is given on investment in fixed assets.
Therefore the same is to be deferred over its useful life. Reduction in fixed asset would mean lower depreciation.
Therefore the same is to be deferred over its useful life. Reduction in fixed asset would mean lower depreciation.
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- Opting out" of regime provided under subsection (1A) of Section 115BAC but Form 10IEA is not filed.
- "Please ensure that the Total of the Deductions u/s 54F match the same in Table D in Sch CG"
- Need to correct "Whether it is last installment " response in Form 26 QB
- " Income from House Property " in joint names of co-owners
- REGARDING TDS RETURN OF FORM 27Q
- Notice under e-Verification Scheme
- GST demand notice for ITC reversal against exempted supply.
- RCM ON SECURITY CHARGES FROM INDIVIDUALS
- How to get money back from delisted company
- ITC not to be taken in accounts & GSTR-3B
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
