Sir,request you to kindly guide on how to adjust Capital Subsidy received in March 2019 in Fixed Assets :-
Option 1 : To reduced Opening WDV with subsidy and then calculate depreciation on Reduced WDV or
Option 2 : To Calculate Depreciation first on Opening WDV and then reduce Subsidy amount .
If this is brand new asset reduce asset by subsidy amount and, it is different in deferred tax computations and you can to do it either ways because you need temporary taxable difference to apply corporate tax. If a subsidy was given in the subsequent years, then reduce it the from current depreciation.
O P Bagla & Co LLP
New Delhi
CA Inter
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BHUPINDER SHAH AND COMPANY
New Delhi
CA Inter
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CAclubindia
