Hi,
Amongst the following,
Government grants,
Subsidy,
Capital allowances,
50 percent discount sale,
Which of them will give rise to temporary difference in deferred tax? Is a government grant given like a claim or cash only?
yasaswi gomes (My grammar is 💯 good I) (7290 Points)
23 March 2021Hi,
Amongst the following,
Government grants,
Subsidy,
Capital allowances,
50 percent discount sale,
Which of them will give rise to temporary difference in deferred tax? Is a government grant given like a claim or cash only?
CA. Sourav Sarkar
(Chartered Accountant )
(24583 Points)
Replied 23 March 2021
yasaswi gomes
(My grammar is 💯 good I)
(7290 Points)
Replied 23 March 2021
That is comforting and I knew about capital allowances but not grants. So grants cannot give rise to temporary difference liability because a grant will reduce the carrying amount in two methods and assets tax base always be higher. Correct?
CA. Sourav Sarkar
(Chartered Accountant )
(24583 Points)
Replied 23 March 2021
yasaswi gomes
(My grammar is 💯 good I)
(7290 Points)
Replied 23 March 2021
So does it give rise to deferred taxes?
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