Doubt clarification

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

28 December 2014 Treatment of subsidy received for Purchase of
Solar water Pump

For Example An assessee had purchased a solar water Pump under subsidy scheme

How to account this in the balance sheet and whether we can take this as a fixed asset and claim depreciation rate@ 80%

Tell me where to show in the balance sheet as and in the profit and loss account

CA PARAS BAFNA

CA PARAS BAFNA (Expert)
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28 December 2014 In this case the subsidy is received on capital account. You have to credit the same to the respective asset account and claim depreciation on the balance (cost less subsidy)at the prescribed rate.
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