Payment of dividend without providing depreciation

Others 886 views 3 replies

Can a company pay dividend without providing current  year's deprerciation? 

Replies (3)

as far as i think, company cannot declare dividend without proiding for depreciation.

A company can pay dividend without providing for current year's depreciation but it will be in violation of Sec 205 of the Companies Act.

Hi, here is my opinion

Dividend is paid out of the profits available for appropriation which comes only after the deduction of depreciation.


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