Subsidy Equals 75% of Sales Tax Paid, Classified as Capital Receipt for Establishing Business Units, Not a Tax Refund.

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....Subsidy receipt - Merely because the amount of subsidy was equivalent to 75% of the sales tax paid by the beneficiary does not imply that the same was in the form of refund of sales tax paid. Therefore, since the subsidy was for setting up of large/medium/small scale eligible unit, it is in the nature of capital receipt.....