Governmental authority status supports construction-service exemption, while pre-cutoff contract and stamp-duty compliance requires verification on re...
Automated Free Sale and Commerce Certificates enable paperless processing while retaining risk-based manual verification for selected exporter applica...
Employee stock-shortage penalties do not constitute consideration for services, preventing GST collection under Schedule II in employment relationship...
Capital subsidy received by assessee for setting up new industry, by way of refund of sales tax/excise duty, is a capital receipt not includible in book profits for MAT computation u/s 115JB. Once subsidy is reduced from written down value (WDV) of assets for depreciation purposes, it cannot be treated as income u/s 2(24)(xviii) from A.Y. 2016-17 onwards. Capital receipts are excluded from book profits even if credited in profit and loss account. Allowing subsidy for depreciation but disallowing for MAT would lead to double taxation. Consistent treatment should be given for regular income and MAT purposes.
Capital subsidy received by assessee for setting up new industry, by way of refund of sales tax/excise duty, is a capital receipt not includible in book profits for MAT computation u/s 115JB. Once subsidy is reduced from written down value (WDV) of assets for depreciation purposes, it cannot be treated as income u/s 2(24)(xviii) from A.Y. 2016-17 onwards. Capital receipts are excluded from book profits even if credited in profit and loss account. Allowing subsidy for depreciation but disallowing for MAT would lead to double taxation. Consistent treatment should be given for regular income and MAT purposes.
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