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
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.
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