Subsidy amount received

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B.Com
24 Points Joined September 2014

Hello Dear  Sir/Madam,.....

i am an accountant i have one quiry, if in propritership consern a propritor received subsidy amount for his house construction from govt. how to account the same is it comes under profit & loss account or capital account.....

is it consider for tax calculation or not....?

Please suggest me its urgnet....

Regards,

Altaf.

Accountant

M-9844794615

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On 03 September 2014 at 16:12 Report
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Chartered Accountant
429 Points Joined March 2008

Hi,

Subsidy recieved on a capital asset will reduce the acquisiton value/WDV of that asset.

Hence impact your depreciation.

Whereas in case if subsidy is recieved for revenue item it should impact your profit and loss account.

For any further query PM or mail us.

AJH & CO.

info @ ajhco.in

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On 03 September 2014 at 17:13


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