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bonus

124 views 2 replies

Puja Purohit

Student

33 Points Joined December 2016

If company had paid 150000 as bonus but it's bonus liability as per bonus act is 180000 then which amt should be deducted from net profit

Replies (2)

Nikhil Kaushik

Fellow CA

86876 Points Joined June 2009

since the accounting is as per accrual basis, you need to provide for Rs 180000 fully leaving Rs 30000 as outstanding liability

Divakar

Student CA Final

11857 Points Joined May 2015

bonus or commission paid or payable to any member of the company’s staff,

or to any engineer, technician or person employed or engaged by the company, whether

on a whole-time or on a part-time basis;.... So deductible amount under section 198 is 1.80 lakh