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Capital subsidy treatment
My company has received Central Capital Investment Subsidy in 2013 of Rs.2 crores which was applied in 2008 for Rs. 3 crores. What will be the treatment of subsidy in Accounts? and how to apportion it?? as I have not received the full amount which I had applied for.
Replies (1)
It should be treated as income. Reason
1. Partial amount is recived after 5 year of actual expenditure.
2. No amount of subsidy is received at begining of Venture.
hence i think at the time of expenditure u have made Capax. hence now u should treat as inocme and accordingly charged at P&L a/c but Dislocure should be given in Notes to Account why income of current year is raised in spite of normal trading profit.
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