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Managerial remuneration of profit u/sec 198

Sir calculating net profit for managerial remuneration we are deducting capital profits from GP Can we add credit of profit to the extent of (Orginal cost - WDV) when we sale the Fixed assets at More than cost.. Can we add that amt of profit sir to Gross profit while calculating Netprofit under sec 198..


M.V. Naresh

M.V. Naresh

CA Inter

2K+

15-Oct-20 13:54

14

Answers (1)

To the extent of profit which is equal to cost - nbv, it is allowed.


Suraj Lakhotia

Suraj Lakhotia

Admin

16-Oct-20 10:33