Book Profit - partners remuneration
This query is : Resolved
10 July 2011
Which is the Book Profit to be considered for calculating partners remuneration?
10 July 2011
Gross Profit & Other P&L Income....450000
Less:..... Business Expenses .......50000
Balance of profit .................400000
Less:
.
Interest to Partners....... 30000
.
Book Profit........................370000
Remuneration will be calculated on the basis of 370000/
Less:..... Business Expenses .......50000
Balance of profit .................400000
Less:
.
Interest to Partners....... 30000
.
Book Profit........................370000
Remuneration will be calculated on the basis of 370000/
Message likes :
2 times
11 July 2011
Whether disallowances are also added back, and then the remuneration is calculated?
Regards,
Devendra K
Regards,
Devendra K
11 July 2011
Yes, Devendra, you have to include the items disallowable for calculating the remuneration as such items are taxable and as such form part of the book profit.
11 July 2011
Yes, Devendra, you have to include the items disallowable. See the modified Example-
Gross Profit & Other P&L Income....450000
Less:..... Business Expenses ........50000
Balance of profit .................400000
Add:
Provision for Income Tax (Disallowable)
20000
Profit after Disllowables ..........420000
Less:
.
Interest to Partners.............. 30000
.
Book Profit........................390000
Remuneration will be calculated on the basis of 390000/
Gross Profit & Other P&L Income....450000
Less:..... Business Expenses ........50000
Balance of profit .................400000
Add:
Provision for Income Tax (Disallowable)
20000
Profit after Disllowables ..........420000
Less:
.
Interest to Partners.............. 30000
.
Book Profit........................390000
Remuneration will be calculated on the basis of 390000/
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- House Property Reporting in ITR
- TDS Claim year
- TDS Challan Code
- Rent lease agreement
- Relief u/s Section 89
- REGARDING SECTION 44AE
- Merchant Export Accounting
- Section 43B(h) – MSME Invoice Paid Before Year End but After 45 Days
- Agriculture income or business income
- Entries in AIS regarding sale of units and shares
- E Commerce GSTR1 & 3B how to file
- GST Cancellation without jurisdiction
- Legal Opinion on Registrar's Refusal to Investigate a Society for Non-Renewal and Non-Compliance
- GST Refund_RFD-01
- Form10BD was uploaded successfully without any Error but after 24 hours, Form10BE are not available
- Annexure B utility for GST Refund
- Tax amount diff in Gstr1 and 3B in tax compare reports
- Tds on GST in connection with sale to public company
- Restoration of certificate of practice
- Regarding change in correspondence address in SSP portal
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
CAclubindia
