LPG Subsidy are being credited directly to bank account now. I am not sure how to handle this. Is it a Taxable Income? Thanks in advance for your help.
9 Replies
Vishal Goel
(Chartered Accountant)
(1688 Points)
Replied 23 February 2015
Hello,
It ll not be a taxable income.
Tripathy
(Proprietor)
(55 Points)
Replied 23 February 2015
If it is not a taxable income then under which section we can ask for deduction/rebate.
Vishal Goel
(Chartered Accountant)
(1688 Points)
Replied 23 February 2015
We don’t claim gas cylinder bill as business expenses. So subsidy received for that is not taxable. It is personal expenses. For business activity commercial gas cylinder is available on which subsidy is not available. Question of taxation doesn't arise.
Tripathy
(Proprietor)
(55 Points)
Replied 23 February 2015
I am a proprietor and all my bank accounts are reported. As I am receiving the LPG Subsidy in one of account so how I do the voucher entry for the same in Tally?
arif
(y)
(27 Points)
Replied 24 February 2015
Bank a/c dr.
To subsidy received
Subsidy received a/c dr.
To Proprietor's capital
arif
(y)
(27 Points)
Replied 24 February 2015
Bank a/c dr.
To subsidy received
Subsidy received a/c dr.
To Proprietor's capital
Kaushik Joshi
(Practising Chartered Accountant)
(1527 Points)
Replied 24 February 2015
You can directly transfer it to capital account and reduce the personal expense on gas cylinder.
Arif Ali
(Apt Co Advisory)
(1230 Points)
Replied 24 February 2015
Add the subsidy to capital account. and show also as drawing for payment of gas cylendar.
Kaushik Joshi
(Practising Chartered Accountant)
(1527 Points)
Replied 24 February 2015
Your welcome Mr.Tripathy
Recent Topics
- Clarity needed on effective date
- Income Tax Refund Deadline Shortened to Five Years
- Rectification Applications for Past GST Demands
- Where can I find a trusted provider to hire a skip
- GST Invoices Series
- FILING OF ITR AY 20-21
- CLAIMING OF U CLAIMED RCM
- Building construction works
- REGARDING GSTR-9 F.Y 2023-24
- Rectification to decrease income in SCHEDULE OS
Related Threads
CAclubindia
