sir we are running poultry farm. we are received subsidy from animal husbandry department , so subsidt taxable or not
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Animal husbandry subsidy taxable or not
Replies (3)
Yes... It's accountable as a income...
But, Say here the reason if subsidy...
But, Say here the reason if subsidy...
Yes . it is taxable as it has nexus with businesses
On appeal before the Supreme Court by the Tax Officer, it was noted that the character of subsidy is to be determined based on the “purpose test”
It was clearly laid out that the object of the subsidy was for development of industrial growth in a particular sector and to generate more employment in the State.
Based on the purpose test of subsidy, it's a capital receipt and hence not Taxable.
It was clearly laid out that the object of the subsidy was for development of industrial growth in a particular sector and to generate more employment in the State.
Based on the purpose test of subsidy, it's a capital receipt and hence not Taxable.
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