Section 198 calculation of profit

[sachin kumar]

Dear Sirs,

Can anybody provide me the table for calculation of profit for expenditure on CSR.

[NeH@ Bi$hNoI]

http://taxguru.in/company-law/computation-net-profit-csr-contribution-section-198.html

 

 

CS Neha Bishnoi

Spaze Group

Gurgaon

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Thank you

On Thu, Mar 12, 2015 at 1:02 PM, sachin kumar <cssach...@gmail.com> wrote:

Dear Sirs,

Can anybody provide me the table for calculation of profit for expenditure on CSR.

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[sachin kumar]

Tnx Ms. neha

[VIMAL SHARMA Compliance]

basically its profit before tax

Thanks & Regards,

Vimal Sharma

Move out of your comfort zone, You can only grow, if you are willing to feel awkward and uncomfortable, when you try something New..

[Rakhi Singh]

why u r calculating the profit when it is given profit calculated under company act 1956 need not to be calculated 

Thanks & Regards,

 Rakhi Singh

Company Secretary

NKG Infrastructure Limited

Tel-+91-11-23413731

Fax-+91-120-4537458

Mob# - +919990664838

[sachin kumar]

Dear Rakhi,

It's mean that just take PBT and claculate average net profit. Section 198 is not required for f.y 13-14.

[Rakhi Singh]

Dear sir,

if i interprete  section 135 and CSR Policy rules,2014 which says:-if financial statements were prepared in accordance with the provisions of the companies act,1956 then net profit shall not be required to be re-calculated in accordance with the provision of the act:

so why we are taking PBT why not PAT

[sachin kumar]

But in the rule clearly mentioned that for the expenditure on CSR we will have to take PBT. I m also confused if we prepare financial as per CA 1956, then why we calculate profit as per 2013. Please guide

[Rakhi Singh]

no where is written we need to take PBT if we calculate as per sec 198 than it will be PBT after all deduction and addition

 but in rule it is also written if financial statements were prepared in accordance with the provisions of the companies act,1956 then net profit shall not be required to be re-calculated in accordance with the provision of the act:

[sachin kumar]

Dear Rakhi,

It's mean if the profit of three preceding years calculated as per Act 1956, then just take of average PBT for the purpose of CSR.

[VIMAL SHARMA Compliance]

We have taken PBT for calculation.

[sachin kumar]

Dear Vimal my doubt is depreciation is calculated as per schedule XIV for 3 preceding f.y, and

As per section 198 in making the computing of net profit, deduction of depreciation to the extent specified section 123 of ca 2013, means schedule II of the CA act 2013.

What should i do, just take pbt.