28 July 2016
turnover 6000000 ..
as per books of accounts it is loss .. so we declared 8% ... 6000000*8%=480000
interst on capital say 100000 so now profit is 380000 .. now how to calculate book profit for the purpose of remuneration ... remunaration wl b on first 300000 90% & on balnce 80000 60% or Rs. 150000 only ??? plz guide thnks
28 July 2016
90% of 300,000 = 270,000 + 60% of 80,000 i.e. 48,000. So allowable salary could be upto 318,000 pay tax for the firm on 380,000 - 318,000 = 62,000 What else is the query?
CAclubindia
