Treatment of one time payment
This query is : Resolved
19 November 2015
Please help me in this regard;
One company have to pay an one time payment of 25 cr to govt for using river water and it is to be paid in 5 installments,there is no specific time period for using the water after payment of that amount to govt.Then what will be its treatment in companys books of account. That amount will be paid from this f.y.
One company have to pay an one time payment of 25 cr to govt for using river water and it is to be paid in 5 installments,there is no specific time period for using the water after payment of that amount to govt.Then what will be its treatment in companys books of account. That amount will be paid from this f.y.
19 November 2015
Charge it over the life of the project. In case of power generating project the life is 25 years so it can be charged over a period of 25 years.
19 November 2015
Thank you..but please say me the journal entries if the payment is made in 5 installments and also entry relating to its writting off
19 November 2015
Capitalize as intangible asset River water usage rights and amortize it over the life. Refer AS 26 in this regard.
19 November 2015
Yes thank you so much
20 November 2015
Please provide me a case study in which company this same thing has happened.
21 November 2015
I have not come across any case study on the same thing it is only applying accounting standards for a particular situation. For our power generating company only free water is provided from Indra Gandhi canal.
21 November 2015
its ok then
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- Gst registration in the state of maharashtra
- Service Provider GST
- After retirement
- 44AD PRESUMPTIVE RATE ON CREDIT SALES
- Input tax credit on modular office kitchen
- Input tax credit on officw kitchen furniture fixed to wall and drawers
- What is turnover in case of intra day trading?
- Merger of twu units under same PAN
- Section 192 2B
- TDS on video/ photos edit
- Input Credit available in Credit ledger
- If the GSTR1 filed after due date and the invoices mentioned GSTR1-A, will we be able to claim ITC o
- REGARDING RETIREMENT OF PARTNER
- Regarding consequences of retirement of partner in firm
- Time Limit for Availment of ITC laying in ITC Reversal Ledger
- Tally entry - Debit note
- Debit Note of GST amount
- Regarding ITC taken or not
- GSTP registered individual should apply gstin for trading business
- Liability for GST registration in case of commission agent dealing in the sale of land.
Trending Online Classes
-
GST LIVE Certification Course - 42nd Weekend Batch(With Govt Certificate)
Industry Expert17 May 2025
CAclubindia
