22 January 2012
Subsidy is received on setting up plant in backward area, so is this subsidy a capital receipt or revenue receipt? What are its tax implications?
22 January 2012
The subsidy received for setting up a plant in backward area should be treated as a capital subsidy. The amount of subsidy should be added to capital reserve and cost of plant should be shown as value of asset without deducting the subsidy.
CAclubindia
