09 September 2010
1.whether a private company can charge a higher depreciation,than those specified in schedule -14 of companies Act 1956 to reduce book profits.
2. Whether the A.O has any power to rework the book profit based on the depriciation rates specified in schedule-14 of Companies Act,1956.
09 September 2010
The Additions /deletions to be made from the Figure of the Net Profit as reflected in the Profit & Loss Account to convert the same into Book Profit for MAT purpose , shows that whatever amt. of dep. charged to P & L A/c is to be added and substracted excluding the dep on the revaluation of assets. In a nutshell, Your action would not have any impact.
Further, under the Companies Act,1956 when the Company charges higher rate of depreciation than that prescribed under Schedule XIV - , the discloure in the notes should be given.
CAclubindia
