Interest on capital
This query is : Resolved
Nishant Kumar
(Querist)
09 June 2017
What is the need for Interest on Capital in a Sole Proprietorship? I understand that as per Business Entity Concept, Owner is separate from Business, and hence he requires interest on the amount invested by him in the Business. However, really, he is the one carrying on the business. So, in a way he is charging interest on his own money. Please explain!
CA Rashmi Gandhi
(Expert)
09 June 2017
No interest on capital is to be charged in case of sole proprietorship firm.
09 June 2017
An individual can't transact with himself to take commercial advantage. Hence proprietor can't levy interest on the capital brought in the proprietory business.
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
- Opting out" of regime provided under subsection (1A) of Section 115BAC but Form 10IEA is not filed.
- "Please ensure that the Total of the Deductions u/s 54F match the same in Table D in Sch CG"
- Need to correct "Whether it is last installment " response in Form 26 QB
- " Income from House Property " in joint names of co-owners
- REGARDING TDS RETURN OF FORM 27Q
- Notice under e-Verification Scheme
- GST demand notice for ITC reversal against exempted supply.
- RCM ON SECURITY CHARGES FROM INDIVIDUALS
- How to get money back from delisted company
- ITC not to be taken in accounts & GSTR-3B
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
