Calcultion of Book Profit in Partnership Firm
This query is : Resolved
Querist : Anonymous
Querist :
Anonymous
(Querist)
04 September 2010
If a firm is paying Interest on capital to partners and also salary to partners then
(i) for calculating the Book profit whether interest on capital will add back into Net profit
(ii) can firm charge both interest on capital and salary to partners
(iii) will it affect the tax audit report
Pls advise
(i) for calculating the Book profit whether interest on capital will add back into Net profit
(ii) can firm charge both interest on capital and salary to partners
(iii) will it affect the tax audit report
Pls advise
04 September 2010
1. book profit for salary interest not to be added back.
2. yes
3. No. Only if the same is to be disallowed to be reported. It will form part of 40A(2)(b) parties.
2. yes
3. No. Only if the same is to be disallowed to be reported. It will form part of 40A(2)(b) parties.
04 September 2010
(i) No need to add back interest on capital for calculating Book Profit.
(ii) Yes, if partnership deed provides such clause clearly.
(iii) only reporting of dis-allowances under section 40A(2)(b) shall be made in tax audit report.
(ii) Yes, if partnership deed provides such clause clearly.
(iii) only reporting of dis-allowances under section 40A(2)(b) shall be made in tax audit report.
04 September 2010
I think only disallowance u/s 40(b) if any to be stated under clause 17(g) only and any amount paid to persons covered under section 40A(2)(b) to be reported even if the same is not disallowable under that section under clause 18.
Only while preparing ITR the amount of disallowance u/s 40A(2)(b) needs to be stated and not amount paid.
Kindly confirm.
Only while preparing ITR the amount of disallowance u/s 40A(2)(b) needs to be stated and not amount paid.
Kindly confirm.
05 September 2010
i kindly agree with Mr. Aditya.
Thanks for elaborating provisions.
Thanks for elaborating provisions.
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
- GSTR-1A How to update Invoice
- Excess salary payment.
- INTEREST APPLICABLE ON ITC REVERSAL PORTION
- TDS on Purchase of Immovable Property by NRI from NRI
- Capital gain from sale of house property
- Stamp Paper for partnership firm change new income tax 2025
- Current Account Opening for Sole Proprietorship with Udyam Certificate - Zero Turnover
- SFT Cash Deposit in Current Account
- Annual return in Gst
- Regarding TDS Applicability For Director Remuneration
- Requirement of tax deduction at source by individual
- Cash gift by grand mother to her grand daughter
- 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
- No Compliences after incorporation
- USEFUL LIFE OF USED/SECOND HAND COMMERCIAL VEHICLES
- Claiming TDS deducted by builder on Hardship compensation and Corpus
- Address Change to another state of a Registered Trust with 12AB approval
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
CAclubindia
