Interest on capital
This query is : Resolved
Querist : Anonymous
Querist :
Anonymous
(Querist)
25 January 2016
1. Partnership firm got the capital from partners Rs. 10 crore and invested in purchasing urban land plot to do Banquet business. The firm paid interest to partners on their capital Rs. 1.20 crore.
2. Whether above expenses are revenue expenses or capital expenses?
3. Whether Rs. 1.20 crore loss will be approved by I. Tax as loss of business of the firm?
2. Whether above expenses are revenue expenses or capital expenses?
3. Whether Rs. 1.20 crore loss will be approved by I. Tax as loss of business of the firm?
25 January 2016
1. Interest payment to partners is a revenue expenditure.
2. The interest expense will be allowed only if the partnership deed provides for payment of interest to partners.
3. Loss arising to firm will be allowed.
2. The interest expense will be allowed only if the partnership deed provides for payment of interest to partners.
3. Loss arising to firm will be allowed.
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
- Tax Audit Applicability – Newly Formed Partnership Firm with Profit Below 6%/8%
- Difference between Date of Payment and Date of Deduction?
- TDS CREDIT MISMATCHING
- Buy back of shares u/s69
- Unregistered suppliers utility
- EMI ISSUE IN HOUSING LOAN OLD REGIME
- URGENT-Eligible leaves being shown as 24 days for 3 years Articleship instead of 156 days in 108
- Need Professional Opinion - AY 2012-13 Old Demand & AY 2026-27 Refund Adjustment
- ITR 4 and Bank transactions
- Journal entry of busniess expenses
- The TDS balance for March 26 shows a mismatch between the books and the portal; what should be done
- CALCULATION OF DEFFERED TAX - OP BL IS DTL & CURRET IT DTA
- LLP audit under companies act
- Experienced CA recommendation from Kolkata for FNO return filing
- Interest Reporting in Form 168
- Sales of goods of amount Rs77 lakhs to a party
- Tax Demand of ₹4,650 for AY 2026-27
- Concept of Vendor and customner reconciliation
- Mistake in e-invoice identified after 24 hours
- EXPORT PAYMENT
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
