AOP vs.Partnership
This query is : Open
14 December 2016
Dear,Experts,
If two or more individuals want to enter into works contact business forming a mutual concern say,either Partnership Firm or AOP. But,since the income of the firm will taxable by a flat rate of 30%+cess.,so,in order to save tax and to avail the tax benefit can they alternatively form an AOP,by a deed(unregistered) to conduct same business?What issues they may face for not forming a partnership firm?
waiting for your advice.
14 December 2016
Partnership firm will be better choice. Partners can claim interest on capital and salary from the firm on which no tax payable by the firm.
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