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

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.

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

Income Tax

January 31, 2024

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