Accounting treatment of foc voucher

Dear Alok,

you should claim it and adjust from your repair & maintenance bills

Thank for the suggestion Sir..  But can I not claim it as a deduction from the cost of asset as it is of the nature of discount directly relatable to purchase. 
On doing this I could have deffered the income which as of now would be taxable this year if it is adjusted with repair and maintainance bills.

Thank for the suggestion Sir..  But can I not claim it as a deduction from the cost of asset as it is of the nature of discount directly relatable to purchase. 
On doing this I could have deffered the income which as of now would be taxable this year if it is adjusted with repair and maintainance bills.

Hello,

I think it will be more appropriate to reduce fixed asset cost. with voucher  amount

Thanks Sir...  It would be great help if i get some thing in support of this because the amout 5 lacs mentioned in the example actually runs in crores cumalatively. If the AO disallows it afterwards it would pose a big prob. I went through AS 10 throughly but was not exactly sure about how to interpret any clause in support of my decision to reduce the cost of fixed asset by that amount. I want to treat this as you suggested beacuse it would defer a big tax amount.

It is not directly related to purchase of fixed asset. Because it is contingent upon future event that you have to buy some spare parts from Y Ltd. Hence, it is appropriate to adjust to Repairs and Maintainance.

YOU ARE SAYING RIGHT

Now if i argue it this way that since we had paid for the Vehicals in advance so any discount provided by them could be routed only through purchase of spare from their agent since we have running business with their agent Y Ltd.. The discount of Rs. 5 Lac per vehicle was triggered on purchase of the Fixed asset. So i am adjusting the same therein. Also they are billing the spares at normal rate; if it was free of cost then we had to record the same at nominal vale and also consume the same at nominal rate at which it was recorded. 
I am arguing that it is just the spare part legder and spare supplier agent who is used to pass on the discount which arose on purchase of fixed asset.

Would the above arguement hold good?

Now if i argue it this way that since we had paid for the Vehicals in advance so any discount provided by them could be routed only through purchase of spare from their agent since we have running business with their agent Y Ltd.. The discount of Rs. 5 Lac per vehicle was triggered on purchase of the Fixed asset. So i am adjusting the same therein. Also they are billing the spares at normal rate; if it was free of cost then we had to record the same at nominal vale and also consume the same at nominal rate at which it was recorded. 
I am arguing that it is just the spare part legder and spare supplier agent who is used to pass on the discount which arose on purchase of fixed asset.

Would the above arguement hold good?