Please note that while making the calculation under section 349 the most of teh deductions to be made from the net profits like interest on mortgages excuted on the company, etc are already been deducted from the gross profits while arising at the said net profit of the company. SO what is the logic behind deducting them again. Kindly help.
19 January 2011
You are right. Net profit, generally is arrived at after deducting all the expenses as enumerated in Section 349(4). However some companies may give different treatment e.g. depreciation rate may be different from the rate specified in Sec.350, and hence to avoid any confusion, the list of items which shall and which shall not be deducted from net profits is provided in SEction 349.
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