Tax Planning in MAT
This query is : Resolved
Shinto.Raphel.T
(Querist)
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.
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.
SANJAY TALATI
(Expert)
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.
Hence, the above is not advisable.
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.
Hence, the above is not advisable.
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