Bonus form D Submission - consolidated Balance sheet and Profit and Loss account? - CiteHR
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Our company has a factory each in Karnataka and Uttarakhand. We prepare a consolidated Balance sheet and Profit and Loss account for the company and also a separate balance sheet for the branch in Uttarakhand. There is no sales from Uttarakhand, only stock transfers to our other branches. Therefore while submitting the Form D return, which is the Financial statement that forms the basis for the returns, the consolidated balance sheet and profit and loss account OR the BS and P&L prepared separately for the Uttarakhand unit?
Based on the Profit and loss account, you have to work the bonus calculation as per the Annexure Bonus Act for all the workmen . The method for calculation of annual bouns is as follow:
Calculate the gross profit profit in the manner specified in-
First Schedule, in case of a banking company, orSecond Schedule, in any other case.
Calculate the Available Surplus.
Available Surplus = A+B, where A = Gross Profit – Depreciation admissible u/s 32 of the Income tax Act - Development allowance - Direct taxes payable for the accounting year (calculated as per Sec.7) – Sums specified in the Third Schedule.
B = Direct Taxes (calculated as per Sec. 7) in respect of gross profits for the immediately preceding accounting year – Direct Taxes in respect of such gross profits as reduced by the amount of bonus, for the immediately preceding accounting year.
Calculate Allocable Surplus
Allocable Surplus = 60% of Available Surplus, 67% in case of foreign companies.
Make adjustment for ‘Set-on’ and ‘Set-off’. For calculating the amount of bonus in respect of an accounting year, allocable surplus is computed after considering the amount of set on and set offf from the previous years, as illustrated in Fourth Schedule.
The allocable surplus so computed is distributed amongst the employees in proportion to salary or wages received by them during the relevant accounting year.

Thank you for you reply. But my main query still unanswered. ie which is the Financial statement that forms the basis for the returns, the consolidated balance sheet and profit and loss account of the whole company OR the BS and P&L prepared separately for the Uttarakhand branch?
Only your company's procedure of consolidated balance sheet is the basis. You may proceed accordingly. Your Uttarakhand, branch, only stock transfers to our other branches, and as such you can not make any P&L separably.
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