Menu
Treatment of income tax refund u/s 198 of companies act
Hai all,
The query is regarding treatment of income tax refund for computation of profits u/s 198 of the companies act 2013,
Can the amount of Income tax refund (along with interest) be deducted from profits while calculating profit under section 198...?
under what circumstances can Directors remuneration be deducted from profits....??
Can the whole amount of profits from sale of fixed assets be deducted while calculating profit u/s 198...??
Kindly clarify.
Thanks and Regards
Vignesh P
Replies (2)
1) Profit u/s 198 practically denotes net profit before tax with some adjustments.
2) IT refund is an adjustment after arriving at net profit and is not to be considered u/s 198.
3) Profit on sale of all fixed assets has to be deducted u/s 198(3)(d).
4) Directors' remuneration is to be deducted for the purpose of Sec.198. However, only for the purpose of calculating ceiling of 11% net profit, directors' remuneration will be added back to profit u/s 198. [Ref. Sec.197(1)].
Thank you Sir,
For the purpose of Section 135 (CSR), it is explained that the computation of profits should be as per section 198. Is Directors remuneration deductable from profit in this context as well....?? Kindly clarify
Recent Topics :
- Difference in TIS
- GSTR-9C Upload Status Error Occured
- “Income Tax Implications of Company-Related
- Advice needed: Hypothetical case of non-filing of
- Demand Raised for Cess Amount Despite Section 89 R
- WRONG BILL NO FILED IN GST R1
- Addtional trade name for my another firm
- Commission / Agency Business without books: REAL E
- Difference between AIS and 26AS data.
- Applicability of FCRA to Article Processing Fees (
Related Topics :
CAclubindia
