Calculation under section 349
This query is : Open
Querist : Anonymous
Querist :
Anonymous
(Querist)
18 January 2011
Dear All
Please note that while making the calculation under section 349 the most of teh deductions to be made from the net profits like interest on mortgages excuted on the company, etc are already been deducted from the gross profits while arising at the said net profit of the company. SO what is the logic behind deducting them again. Kindly help.
Please note that while making the calculation under section 349 the most of teh deductions to be made from the net profits like interest on mortgages excuted on the company, etc are already been deducted from the gross profits while arising at the said net profit of the company. SO what is the logic behind deducting them again. Kindly help.
Jayashree S Iyer
(Expert)
19 January 2011
You are right. Net profit, generally is arrived at after deducting all the expenses as enumerated in Section 349(4). However some companies may give different treatment e.g. depreciation rate may be different from the rate specified in Sec.350, and hence to avoid any confusion, the list of items which shall and which shall not be deducted from net profits is provided in SEction 349.
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- Clarification on GST, TDS, and Accounting Provisions for Import/Export Commission Agents,profes. ser
- Reward for festival
- Clarification on GST, TDS, and Accounting Provisions for Import/Export
- RCM and same line
- TDS Return Statement Status
- 18% Rent a cab
- ARCA LOGIN
- Closer of business and itc of capital goods
- Rectification under processing even after 6 months cpc portal
- Accounting Treatment of Civil work to install PORTA Cabin for office use
- Opting out" of regime provided under subsection (1A) of Section 115BAC but Form 10IEA is not filed.
- "Please ensure that the Total of the Deductions u/s 54F match the same in Table D in Sch CG"
- Need to correct "Whether it is last installment " response in Form 26 QB
- " Income from House Property " in joint names of co-owners
- REGARDING TDS RETURN OF FORM 27Q
- Notice under e-Verification Scheme
- GST demand notice for ITC reversal against exempted supply.
- RCM ON SECURITY CHARGES FROM INDIVIDUALS
- How to get money back from delisted company
- ITC not to be taken in accounts & GSTR-3B
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
