Thanx Shelly for sharing this information.Frnds infact i also want to share some new concepts with u that i learnt during this internship....
we all knw that we prepare depriciation schedule but actually we prepare this according to Companies Act 1956 and also Income Tax Act 1961.We treat like this
Acc. to Companies Act, Depriciation for the year = Opening Balance + Op. Bal ( including Cp WIP)+ Addition during the year - Cl. Balance.
Acc. to Income Tax Act 1961, Depriciation for the year = Opening Balance + Addition during the year - Cl. Balance
And then in Consolidate St. Of Provision for Income Tax:
we subtract depriciation calculated as per the Income Tax Act from THe depriciation Calculated from the Companies Act.
Thus how we make Depriciation Schedule.
Monday, April 19, 2010
Subscribe to:
Post Comments (Atom)
Asha can you please through some light on how do we calculate total income of company while calculating for the payment of purpose ot tax ?...Do we take the balance from the consolidated statement ?
ReplyDeleteThanks in anticipation
Hi Shelly,well to answer ur first question i will explain u how to calculate the total income of company by first preparing the statement for tax provision and then we calculate total income in which we deduct this tax provision.For further clarification I will mail u an Excel sheet in which all calculations have been done and to answer ur second question yes we take balance from consolidated statement.If further u have any query regarding this then feel free to ask...
ReplyDeleteThis comment has been removed by the author.
ReplyDeleteThank you Asha..I will study the excel sheet and trouble you with further questions... :)
ReplyDelete