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Whether the average net profit criteria in section 135(5) is Net profit before tax or Net profit after tax?

Avatar 37a3bd7bc7328f0ead2c0f6f635dddf60615e676e6b4ddf964144012e529de45 ROHIT SINGH asked over 2 years ago

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Picsjoin 2017224123730582 Archana answered over 2 years ago

Hie Rohit, - The explanation to section 135(5) states that “average net profit” shall be calculated in accordance with section 198 of the Companies Act, 2013. - In terms of section 198(5)(a) in making computation of net profits, income-tax and super-tax payable by the company under the Income-tax Act, 1961 shall not be deducted. - Therefore, the net profit criterion in section 135(5) is **net profit before tax.**

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Open uri20170510 32134 s5bvk0?1494421637 ARJUN PRATAP SINGH answered over 2 years ago

Dear Friend, as far as your query is concerned that Whether the average net profit criteria in section 135(5) is Net profit before tax or Net profit after tax? Let me informed that The explanation to section 135(5) states that “average net profit” shall be calculated in accordance with section 198 of the Companies Act, 2013. In terms of section 198(5)(a) in making computation of net profits, income-tax and super-tax payable by the company under the Income-tax Act, 1961 shall not be deducted. Therefore, the net profit criterion in section 135(5) is net profit before tax. Hope answer was helpful to you Regards, Arjun Pratap Singh

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