Incometax

This query is : Resolved

YAGNESH HASMUKH DAVE (Querist)
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03 October 2015 WE TWO PARTNERSHIP FIRM & PVT LTD CO THREE ENTITY JOINT TOGETHER UNDER JOINT VENTURE AGREEMENT OF CONSTRUCTION ACTIVITY AND AS PER JOINT VENTURE AGREEMENT INT ON CAPITAL INVESTMENT BY THE PARTNERS INT @ 12% AS PRESICRIBED U/S 40 (B) OF THE I TAX ACT THE INT PAID TO AOP THREE MEMEBERS ON THIER CAPITAL AS PER JOINT VENTURE AGRREMENT ARE ALLOWABLE AS EXPNESES OF THE FIRM U/S 40 (BA) OR UNDER ANY OTHER SECTION 30 TO 38 OF THE I TAX ACT THE TDS IS DEDUCTED ON INT PAID AND PAID TO THE GOVT KINDLY EXPLAIN FULLY

Amol S Joglekar

Amol S Joglekar (Expert)
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03 October 2015 01. Interest on capital is NOT subject matter of TDS.

02. Interest @12% is allowable interest on capital of the JV.

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Ashok Reddy Chapa

Ashok Reddy Chapa (Expert)
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03 October 2015 Dear yagnesh,

The following Conditions should be fulfilled for the deduction of interest paid to partners

1.Payment of interest should be authorised by partnership Deed

2.payment of interest should be pertain to the period after partnership deed

3.rate of interest should not exceed 12% simple interest

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