SUBSIDY RECEIVED (URGENTLY)

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AMRIK SINGH (Querist)
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18 September 2008 Sir,

That the company has SSI unit at Greater Noida (U.P.) and received subsidy through investment grant under intergrated development of leather sector scheme (IDLSS) from Govt. of India toward purchase/ installation of machines.

I want to know how I should account for and pass the entries of the amount of incentive received. This incentive is taxable or non taxable.

machinery cost of Rs.30.00 Lacs, Incentive received Rs.9.00 Lacs i.e. 30% of cost of machinery. please calculate the written down value of machinery and depreication

Sir,
requested you to resolve the query urgently because this query relate to financil year 2007-08

with regards

AMRIK SINGH

Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)
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18 September 2008 Subsidy received may be credited in the respective asset accounts.
Not taxable since it is a capital investment subsidy.

AMRIK SINGH

AMRIK SINGH (Querist)
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18 September 2008
Sir,

That the company has SSI unit at Greater Noida (U.P.) and received subsidy through investment grant under intergrated development of leather sector scheme (IDLSS) from Govt. of India toward purchase/ installation of machines.

I want to know how I should account for and pass the entries of the amount of incentive received. This incentive is taxable or non taxable.

machinery cost of Rs.30.00 Lacs, Incentive received Rs.9.00 Lacs i.e. 30% of cost of machinery. please calculate the written down value of machinery and depreication

Sir,
requested you to resolve the query urgently because this query relate to financil year 2007-08

with regards

AMRIK SINGH

AMRIK SINGH

AMRIK SINGH (Querist)
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19 September 2008 machinery cost of Rs.30.00 Lacs, Incentive received Rs.9.00 Lacs i.e. 30% of cost of machinery. please calculate the written down value of machinery and depreication

AMRIK SINGH

AMRIK SINGH (Querist)
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19 September 2008 machinery cost of Rs.30.00 Lacs, Incentive received Rs.9.00 Lacs i.e. 30% of cost of machinery. please calculate the written down value of machinery and depreication

mohan rao

mohan rao (Expert)
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19 September 2008 as per AS 12 , U CAN DEDUCT THE THE INCENTIVE FROM THE ORIGINAL COST OF THE ASSET

Advocate Vivek Kumar Sancheti

Advocate Vivek Kumar Sancheti (Expert)
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20 September 2008 Any subsidy received for capital purpose is not taxable.Here the subsidy is received for purchasing machinery which is a capital asset.Hence,the subsidy so received is not taxable.For accounting treatment of subsidy please go through AS 12.

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