How to reach the net profit for the purpose of managerial remuneration & provision for tax?
Lalit Kumar
(Vice President )
(2213 Points)
Replied 24 March 2011
Total ceiling of managerial remuneration
Section 198(1) relates to overall maximum managerial remuneration and managerial remuneration in case of absence or inadequacy of profits. The total managerial remuneration payable by a public company or a private company which is a subsidiary of a public company, to its directors and its manager in respect of any financial year shall not exceed 11% of the net profits of the company for that financial year. Such net profits shall be computed in a manner laid down under sections 349 and 350, except that the remuneration of the directors shall not be deducted from the gross profits.
Download the file below for Profit Calculation as per sec 349 and 350 :
Sindhuja
(Articled Assistant)
(36 Points)
Replied 24 March 2011
Does sec 198 applies only to public co., & private companies, subsidiary of public co.,??
Is private company exempt from this sec?
Does d same apply for calculation of provision for tax also?
suresh
(accountent)
(21 Points)
Replied 08 July 2013
How to calaculate Net & gross profits what is The formla & how to calaculate closing stock Value What Is the Formla
CAclubindia
