Urgent: treatment for provision for bad debts under mat
CA abhishek Jain (Associate manager) (106 Points)
24 January 2014CA abhishek Jain (Associate manager) (106 Points)
24 January 2014
Kirthiga Rao
(----)
(94 Points)
Replied 24 January 2014
Yes, you can reduce the actual bad debts reversed while computing book profits under section 115JB. Refer Explanation 1 to section 115JB (Amount withdrawn from reserves or provisions, if the same had been added back for computing book profit in an earlier year)
CA abhishek Jain
(Associate manager)
(106 Points)
Replied 24 January 2014
Thank You.
One more question while making provision for bad debts We should add back it for calculating 'Book Profit'. It is because of 'Provision made for unascertained liabilities' OR 'Provision for dimunition in value of any asset'.?