if grant is rceived in Import of plant and machinery then depreciation should be claimed on cost less grant .
also in the books we should reduce it from the cost of the machinery.
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DEPRECIATION on plant and machinery
Replies (3)
hi
in my opininon it should be reduced. tel me if u any other answer.
As per AS 12 grant should be reduced from assets value and depreciation calculated on this reduced value as per company law
As per Income tax act u/s 43 cost of aquisition shiould be reduced to the extent of grant and depreciation as per IT to be calculated on this amount.
it depends on nature of grant
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