Managerial remuneration of profit u/sec 198

Accountancy

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 Naresh

CA Final

★ 3K+

15-Oct-20 13:54

686

Answers (1)

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

CA Suraj Lakhotia

Admin

16-Oct-20 10:33