GST Solution

Ask a Query

Client Login

[THE FIRST SCHEDULE]

[See section 4(a)]

COMPUTATION OF GROSS PROFITS

Accounting year ending...........................

Item No.	Particulars	Amount of sub-items	Amount of main items	Remarks
		Rs.	Rs.
^*1.	Net-profit as shown in the Profit and loss Account after making usual and necessary provisions.
2.	Add back provision for :
	(a ) Bonus to employees.
	(b ) Depreciation.
	(c) Development Rebate Reserve.			See footnote (1)
	(d ) Any other reserves.			See footnote (1)
	Total of Item No.2	Rs.
3.	Add back also:
	(a) Bonus paid to employees in respect of previous accounting year.			See footnote (1)
	(b) The amount debited in respect of gratuity paid or payable to employees in excess of the aggregate of—
	(i) the amount, if any, paid to, or provided for payment to, an approved gratuity fund; and
	(ii) the amount actually paid to employees on their retirement or on termination of their employment for any reason.
	(c) Donations in excess of the amount admissible for income-tax.
	(d) Capital expenditure (other than capital expenditure on scientific research which is allowed as a deduction under any law for the time being in force relating to direct taxes) and capital losses (other than losses on sale of capital assets on which depreciation has been allowed for income-tax).			See footnote (1)
	(e) Any amount certified by the Reserve Bank of India in terms of sub-section (2) of section 34A of the Banking Regulation Act, 1949 (10 of 1949).
	(f) Losses of, or expenditure relating to, any business situated outside India.
	Total of Item No.3	Rs.
4.	Add also income, profits or gains (if any) credited directly to published or disclosed reserves, other than—
	(i) capital receipts and capital profits (including profits on the sale of capital assets on which depreciation has not been allowed for income-tax);
	(ii) profits of, and receipts relating to, any business situated outside India;
	(iii) income of foreign banking companies from investments outside India.
	Net total of Item No. 4	Rs.

5.	Total of Item Nos. 1, 2, 3 and 4	Rs.
6.	Deduct:
	(a) Capital receipts and capital profits (other than profits on the sale of assets on which depreciation has been allowed for income-tax).			See footnote (2)
	(b) Profits of, and receipts relating to, any business situated outside India.			See footnote (2)
	(c) Income of foreign banking companies from investments outside India.			See footnote (2)
	(d) Expenditure or losses (if any) debited directly to published or disclosed reserves, other than—
	(i) capital expenditure and capital losses (other than losses on sale of capital assets on which depreciation has not been allowed for income-tax);
	(ii) losses of any business situated outside India.
	(e) In the case of foreign banking companies proportionate administrative (overhead) expenses of Head office allocable to Indian business.			See footnote (3)
	(f) Refund of any excess direct tax paid for previous accounting years and excess provision, if any, of previous accounting years relating to bonus, depreciation, or devel-opment rebate, if written back.			See footnote (2)
	(g) Cash subsidy, if any, given by the Government or by any body corporate established by any law for the time being in force or by any other agency through budgetary grants whether given directly or through any agency for specified purposes and the proceeds of which are reserved for such purposes.			See footnote (2)
	Total of Item No. 6	Rs.
7.	Gross profits for purposes of bonus (Item No. 5 minus Item No. 6)
			Rs.

Explanation.—In sub-item (b) of item 3, "approved gratuity fund" has the same meaning assigned to it in clause (5) of section 2 of the Income-tax Act.

Footnotes—

(1) If, and to the extent, charged to Profits and Loss Account.

(2) If, and to the extent, credited to Profit and Loss Account.

(3) In the proportion of Indian Gross Profit (Item No. 7) to Total World Gross Profit (as per Consolidated Profit and Loss Account, adjusted as in Item No. 2 above only).

Latest Articles

<--

WHAT IS GST?

GST i.e.Goods and Service Tax is a unified tax that replaces several indirect taxesleviedby the Central Government and the State Government(s)....

-->

BASIS OF CHARGE OF GST- SUPPLY

In pre-GST regime, goodswere liable to: (i) Excise Duty- on manufacture of goods; (ii) VAT/CST- on sale of goods; (iii) Entry tax- on ...

WHO IS LIABLE TO PAY TAX

GST is levied on every taxable person. Taxable person means a person who carries on any business at any place in India. Such . ..

WHAT IS TAXED UNDER GST

GST is a unified tax which is levied on: (i) goods; (ii) services and (iii) a mix of goods and/or services. Any supply of goods or services . .. ...

Who We Are

GST India Solution is an effort of firm of professionals who welcome implementation of GST. This is an interactiveplatformthat aspires to disseminate right knowledge to professionals, practitioners and public at large. This platform has beenfloatedbya firm of Chartered Accountants relentlessly working in field of direct and indirect taxes since early 1985.

Goods & Service Tax

Our core competence is statutory compliance, advisory, corporate tax planning and appellate matters of direct and indirect taxesandcorporate training sessions on GST.

The senior partner of the firm has to his credit several professional publications viz., Delhi Sales Tax Right to Use Goods Act, Delhi VAT, Maharashtra VAT, West Bengal VAT, Haryana VAT published by Taxmann. Madhya Pradesh VAT and Chhattisgarh VAT were published by Suvidha Law House, Bhopal. He has also addressed seminars on indirect taxes organized by professional bodies like ICAI, IMA, NIFM etc. and has also contributed articles on subjects of pro. . . . .