There is a government company which has got Rs 5 Crore as a programmatic expenditure from its promoter for completing a project, for which this company has been created.This government company has come into the existence only for completion of project now apart from capital contribution, this company has got the Rs 5 cr for expenditure for facilitating the project.
Now question is what should be the accounting entry in the books of accounts of company kkeping in view the taxation implication.
Please reply.
CAclubindia
