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subsidy received for machinery

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64 Points Posted on 15 March 2019
assessee purchase machinery of 10000000 on jan and on the april he received govt subsidy of 3000000 how will he treat subsidy as in closing book of march he claim dep on 10000000.
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On 15 March 2019 at 13:44 Report
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SEO Sai Gr. Hosp.
211572 Points Posted on 15 March 2019

The subsidy is credited to P&L account and is taxable.

581 Reply
On 15 March 2019 at 14:03
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64 Points Posted on 15 March 2019
as par As12 subsidy received for plant and machinery is reduced from value of actual cost of machine
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On 15 March 2019 at 14:06
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SEO Sai Gr. Hosp.
211572 Points Posted on 15 March 2019

Yes you are correct, but also refer the following...

 

taxability-of-government-grants-an-analysis

 

icds-vii-government-grants

 

sutra.com/experts/column

581 Reply
On 15 March 2019 at 14:14
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Team Lead
7558 Points Posted on 15 March 2019
deduct the subsidy received in the year from the sale of wdv of the asset and compute depreciation accordingly.the grant will be recognized as income in the form of reduced depreciation charge.
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On 15 March 2019 at 15:42


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