Go Ad-Free on CAclubindia with Daily Mobile Updates. Subscribe Now!

115jb: minimum alternate tax provisions for company

yashsr (CA) (2285 Points)

31 March 2012

Amongst the adjustments that have to be made to Net Profit to arrive at Book Profit of a Company, do prior period expenses also have to be added back?

Reply
Follow
Share

1 Replies

Sonam Bidasaria (CA) (770 Points)
Replied 31 March 2012

Prior period exopenses will not have to be added back as it is not covered in the explanation to SEc 115JB

Explanation ⁵¹[1].—For the purposes of this section, “book profit” means the net profit as shown in the profit and loss account for the relevant previous year prepared under sub-section (2), as increased by—

(a) the amount of income-tax paid or payable, and the provision therefor; or

(b) the amounts carried to any reserves, by whatever name called ⁵²[, other than a reserve specified under section 33AC]; or

(d) the amount by way of provision for losses of subsidiary companies; or

(e) the amount or amounts of dividends paid or proposed ; or

(f) the amount or amounts of expenditure relatable to any income to which ⁵³[section 10 (other than the provisions contained in clause (38) thereof) or ⁵⁴[***]section 11 or section 12 apply; or]

⁵⁵[(g) the amount of depreciation,]

⁵⁶[(h) the amount of deferred tax and the provision therefor,

⁵⁷[(i) the amount or amounts set aside as provision for diminution in the value of any asset,

if any amount referred to in clauses (a) to (i) is debited to the profit and loss account, and as reduced by,—]]

⁵⁸[(i) the amount withdrawn from any reserve or provision (excluding a reserve created before the 1st day of April, 1997 otherwise than by way of a debit to the profit and loss account), if any such amount is credited to the profit and loss account:

1 Like