Loan
This query is : Resolved
Sowmya.S.Balan
(Querist)
17 December 2013
Dears
Whether it is possible for a proprietory firm can accept loan on profit sharing basis by a/c payee cheque or draft. that is for loan amount of Rs.500000 contributed by Mr A into proprietory firm of B Mr A will receive 40% profit of the proprietory firm. Is there any problem under IT Act. How it is treated
Whether it is possible for a proprietory firm can accept loan on profit sharing basis by a/c payee cheque or draft. that is for loan amount of Rs.500000 contributed by Mr A into proprietory firm of B Mr A will receive 40% profit of the proprietory firm. Is there any problem under IT Act. How it is treated
CA PARAS BAFNA
(Expert)
17 December 2013
It may not be treated friendly by the IT Department.
.
Such sharing of profit can be tantamount to
a partnership or an AOP and may be subjected to higher rate of Tax.
.
.
Such sharing of profit can be tantamount to
a partnership or an AOP and may be subjected to higher rate of Tax.
.
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