compqny cannot make donation excess 5% avg 3 yr profit to political party .but wat if company made excess contribition wat is it side effect
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Tax side effect on excess donation
Replies (9)
actually the limit of donation or contribution to political party is excess of 7.5% of avg 3 yr past profit
contribution in excess of specified % amounts to contravention of provision of the company's act will amount to fine
Initially this point should be highlighted by the Auditor in his Audit report and reported under suitable head if any while doing tge annual compliances under the Cos ACT.
Auditor has to report this fact under section 182
& the company will be liable to pay the penalty amount:)
wat is limit of donation for chartity nd wat is fine there by co.
co can donate to Bonafide charitable vand other funds
in excess of 5% of the avg net profit of preceeding 3 years by approval in general meeting
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