16 March 2011
Illustration 1 Mr. X set up a new factory in the backward area and purchased plant for Rs. 500 lakhs for the purpose. Purchases were entitled for the CENVAT credit of Rs. 10 lakhs and also Government agreed to extend the 25% subsidy for backward area development. Determine the depreciable value for the asset. Solution Particulars Rs.(in lakhs) Cost of the plant 500 Less: CENVAT 10 490 Less: Subsidy 98 Depreciable Value 392
my query is how is the figure of subsidy arrieved.........
CAclubindia
