I would like to know whether margin money received from KVIC for availing of term loan from bank for purchase of plant and machinery and working capital before setting up a factory is capital or revenue receipt ??
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Margin money from kvic whether capital or revenue receipt
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I think you are asking about subsidy. If subsidy is received for machinery it is capital nature, But you have to deduct the subsidy from machinery for calculating the depreciation and the subsidy for working capital is revenue nature and it is taxable
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