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

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Whether the average net profit criteria in section 135(5) is Net profit before tax or Net profit after tax?
posted Aug 4, 2017 by Amrita

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Net profit before tax
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.

answer Aug 9, 2017 by Naveen Kumar
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