Profit of Pvt Ltd Company

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Mohd Sarfaraz Latibani

Mohd Sarfaraz Latibani (Querist)
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05 August 2010 Is profit of Private Limited Co. be divided among the directors or any other entry has to be passed.

CA Shishir

CA Shishir (Expert)
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05 August 2010 Profit of a private limited company cannot be divided amongst the shareholders without paying Dividend Distribution Tax. If you want to share the profits with the directors deduct TDS under provisions of TDS salary

CA. BIJENDER KR. BANSAL

CA. BIJENDER KR. BANSAL (Expert)
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05 August 2010 Profit of Pvt ltd co can't be divided , it will be tranfer to Reserves & surplus a/c .

VINOD ARORA

VINOD ARORA (Expert)
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05 August 2010 In fact the profits of the private limited company are accumulated in P&L A/c head under groupd Reserves and Surplus or are transferred to General/other Reserves under the same group as may be decided by the General Meeting. In case dividend is declared, then the same may be dsitributed from current year's profits or retained surplus of past year's profits after payment of applicable DDT.

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