Section 115 Jb and accounting year

For computation of MAT under section 115 JB Company need to consider the profit as per annual report for the year. This be the case the every company should have accounting year from April to March only as comparison of book and tax profit for tax purpose in not possible if uniform period for computing the tax amount is not ensured.

But in case company is having accounting period different from April to March say it may have January to December. How that compliance under this section (115 JB) is ensured?

Re-computation of profit for balance period i.e. from January to March is not surely the answer as the recomputed amount will not be those given in original annual report (as required under the said section) and will affect the calculation of deferred tax etc.,

 

 

Replies (4)
If the financial year of the company is not coinciding with April to March, then they have no other option but to prepare the accounts for April to March also, and use it for tax assessment.
AS PER SECTION 115JB THE ACCOUNTS ARE REQUIRED TO BE PREPARED AS PER SCHEDULE VI OF THE COMPANIES ACT AND IF THE ACCOUNTING PERIOD IS DIFFERENT FROM THE TAX PERIOD (APR-MAR), THAN THE COMPANY IS REQUIRED TO MAKE THE ACCOUNTS FOR THE PERIOD (APR-MAR) AS PER SCHEDULE VI AND ALL THE ACCOUNTING STANDARD SHOULD BE COMPLIED IN RELATION TO THAT PERIOD
we would be preparing the accounts for the period Jan - March

 foreign company also required to calculate tax u/s 115JB

even it is not mainting its accounts as per schdule IV of Company Act 1956 

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