Revenue or capital receipt - sales tax subsidy/incentive under ...

Case Laws Income Tax

January 31, 2024

Revenue or capital receipt - sales tax subsidy/incentive under the Package Scheme of Incentives Scheme, 1993 - The High Court held that the sales tax subsidy/incentive received under the 1993 Scheme should be treated as a capital receipt. The principle evolved in this judgment emphasizes the importance of the "purpose test" in determining the nature of subsidies or incentives received by an assessee, focusing on the purpose and object of the scheme under which the subsidy is granted.

View Source

← Previous Next →

Revenue or capital receipt - sales tax subsidy/incentive under ...

Case Laws Income Tax

January 31, 2024

You may also like:

Nature of sales tax incentive - revenue receipt OR Capital subsidy - the incentive received by the assessee under the PSI, 2007 scheme in the form of refund of sales tax...

Nature of receipt - sales tax remission benefit derived by the assessee - All the judgments cited before us also lay down the same ratio. Even otherwise subsidy is...

The Calcutta High Court addressed the nature of a sales tax incentive received under the "West Bengal Incentive Scheme, 2000" for industrial promotion. The scheme aimed...

Subsidy or incentive - purpose tests for grant of subsidy/incentive - incentives received in the form of Sales Tax and Central Excise benefit - revenue or capital...

VAT subsidy - Characterization of receipts - taxability of receipts - The refund now VAT as given to the industrial undertakings only for the purpose of fulfilling the...

Capital or revenue receipt - incentives - excise duty refund, interest subsidy and insurance subsidy held as capital receipts .... – HC

Incentive/ subsidy on sale of sugar – The subsidy under the scheme was given for repayment of the term loans as the incentive to carry on business in the essential...

Taxability of sale of FPS - Focus Product Scheme (FPS) was first introduced with the objective to incentivize export of such products which have high export...

Nature of receipt - Entertainment tax exemption in respect of Multiplexes - whether capital or revenue receipts? - where object of respective subsidy schemes of State...

Nature of incentive subsidy - Capital or revenue receipt - subsidy on the purchase of generator set - the same is capital subsidy and should go on to reduce the cost of asset - AT

MAT - Sales Tax Subsidy - Capital or Revenue Receipt - Capital receipt in the form of Sales Tax incentive needs to be excluded from profit as per P&L Account for the...

Nature of Sales tax incentive received - Revenue receipt OR capital receipt - notwithstanding that the assessee has treated such incentive as revenue receipt in past,...

Chargeability to income-tax of incentives by way of refund of Excise Duty and Exemption of Sales Tax - nature of receipt - not taxable - Since the same is as capital receipt.

Taxability of the receipt given by way of subsidy - Since all the Notifications issued by the State Government for different reimbursements/ remissions, pursuant to the...

Characterization of income - subsidy received - Focus Marketing Scheme - the amount was not an export incentive, but rather capital receipt and therefore, not taxable. - HC

Quick Updates: