01 August 2015
There are 3 people: A,B,C. These people want to form an entity which will monitor agriciultural activity on a farm. They want to undertake a venture with a 4th person who owns the land and will work on it. A,B,C will enture into ventures with many land owners. Profits will be shared 50:50 by this trio and the land owner. Which means the first 50% will be shared by A,B and C equally.
Now my question is what is the best way to register this kind of an arrangement? I was thinking of a plan where A,B and C enter into a partnership. Then, this firm enters into a Joint Venture with land owners. Each arrangement with a different farmer will a different Joint Venture altogether. Makes sense? If yes, how to register these Joint Ventures? Should they be in writing compulsory? Will they all have a different PAN and Bank accounts? Also, what will be tax implication of this Joint Venture?
01 August 2015
Partnership firm will be better, as the income of the firm is exempted and share from the firm on agricultural income is also exempted in the hands of partners
CAclubindia
