Depreciation to be provided for purposes of determining net profits for payment of managerial remuneration Certain queries arising from memorandum issued by Department answered

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....ing net profits for payment of managerial remuneration ‑ Certain queries arising from memorandum issued by Department answered Query : Section 350 defines the amount of depreciation to be deducted in pursuance of section 349(4)(k) from profits for determining the net profits on which managing agency commission is to be calculated. While mentioning the written down value it is stated that th....

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.... chargeable to the capital reserve account to which the amount written up is credited at the time of revaluation of book assets and is not a charge on the working profits of the company. This would have been clearer if the phrase used was "written down purchase price of the assets" instead of "written down value of the assets"? Answer : As regards the first paragraph of the query, the matter has ....