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About subsidy

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SELF
79 Points Posted on 21 July 2018

Dear Sir/Mam,
My Client have received subsidy against machinery loan in F.Y. 2017/18. In that 25,000/- interest subsidy and 1,25,000/- capital subsidy .Then ,which type of effects done in accounts book? and how can I show that in ITR.Are they effect in profit of books? Please advice me.and Thanks in advance for advice.

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On 21 July 2018 at 21:45 Report
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CA Student
88 Points Posted on 21 July 2018
If you receive interest subsidy, then you have to treat it as indirect income. If you receive capital subsidy, you should deduct it from particular asset in proportion to asset value.
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On 21 July 2018 at 21:57
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SELF
79 Points Posted on 21 July 2018
Okay thanks..but any changes are become in law regarding this related year that, capital subsidy count as income.?
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On 21 July 2018 at 22:16
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"Do the Right Thing...!!!"
128152 Points Posted on 21 July 2018
No... You can deduct in Asset Account for capital subsidy.
464 Reply
On 21 July 2018 at 22:36
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Company Secretary
144 Points Posted on 22 July 2018
How to receive subsidy from government pertaining to purchase of machinery?
Guide me.
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On 22 July 2018 at 07:28
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24196 Points Posted on 22 July 2018
You contact your respective SSI department.
161 Reply
On 22 July 2018 at 09:40


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