Can a company pay dividend without providing current year's deprerciation?
Payment of dividend without providing depreciation
Pranjal (Student CA IPC / IPCC) (531 Points)
20 August 2009
3 Replies
llllVICTORllll
(Internal Auditor)
(511 Points)
Replied 20 August 2009
as far as i think, company cannot declare dividend without proiding for depreciation.
CA SUDIPTA SINHA
(Commerce Coaching- Accounts Cost FM)
(735 Points)
Replied 22 August 2009
A company can pay dividend without providing for current year's depreciation but it will be in violation of Sec 205 of the Companies Act.
Mohammad Afroz Ahmed
(Article student)
(51 Points)
Replied 22 August 2009
Hi, here is my opinion
Dividend is paid out of the profits available for appropriation which comes only after the deduction of depreciation.
Recent Topics
- Interest free loans from directors in private limi
- Section 194T
- Paying GST on Residential House Construction
- Gst credit ledger input
- Income Tax Filing after Portal Deadline
- LTCG u/s 54 -Time Period Related
- Clarification -GST registration
- TDS on commercial bus insurance payment
- Do we need Environmental Clearance certificate for
- GST Rate confussion
Related Threads
CAclubindia
