19 August 2018
Suppose my net profit is 50000 after deducting depreciation of 2% and my net profit ratio is 8%, now while filing of return I have claimed depreciation @10% and my taxable profit goes down to 30000 and my net profit ratio goes below 8%. Please guide whether my approach is correct. Also please suggest whether there is need to book deferred tax and in this case am I liable to tax audit.
19 August 2018
Thanks sir, one last query the 8% should be after deducting interest on capital or before that ? Suppose before deducting my net profit ratio is 8.2 % and after deducting interest on capital it is coming to 6 %. So in this case am I liable for tax audit ?
CAclubindia
