Partner's Remuneration U/S 40(b) of I.T.Act

This query is : Resolved

CA Sanjay Baheti (Querist)
Follow

13 March 2010 Assesse being a Parnership Firm. As per terms of Deed Partner's remuneration shall be provided as per section 40(b) of I.T.Act. Now for the Current Year there shall be book loss before providing the same. Whether is it mandatory to provide in books the parner's remuneration subject to maximun Rs. 1,50,000/- in case of Book loss for the year ended as on 31.03.2010.

regards.

Ca Sanjay Baheti

CA Gangadhar Mishra

CA Gangadhar Mishra (Expert)
Follow

13 March 2010 remuneration in case of loss is not mandatory in case of Partnership firms.

CA CHINTAN AJMERA

CA CHINTAN AJMERA (Expert)
Follow

13 March 2010 Agree with expert

CA Chaitanya

CA Chaitanya (Expert)
Follow

14 March 2010 It depends on whether it is provided in the partnership deed or not?

CA Sanjeev Kr Jain

CA Sanjeev Kr Jain (Expert)
Follow

15 March 2010 chaitanya is correct, we need to follow partnership deed

CA Sanjay Baheti

CA Sanjay Baheti (Querist)
Follow

15 March 2010 Dear All Experts.

I got confused as two expert's opinion says that it is not mandatory to provide partner's remuneration in books as per section 40(b) of I.t. act in case of Book Loss, while other Experts says that it
depends on the terms of deed.As i have already mentioned in my query that partnership deed specfied the same.(i.e.Partner's remuneration as per section 40(b) of I.t.Act).

Please clarify the same with best option.

Rahul Vora

Rahul Vora (Expert)
Follow

16 March 2010 As per Section 40(b) of the IT Act, it is not mandatiry to provide for partner's remuneration in the books.
If in the pertnership deed it is mentioned that remuneration to the partners will be paid as per Sec. 40(b) of the IT Act, then you need not provide for partners' remuneration in books.
But, if it is expressly mentioned in the partnership deed, that in any case, partners are to be paid such and such remuneration, then you have to go by the partnership deed.
Hope, this clears your confusion.

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now

Join the CA Students WhatsApp Community for ICAI Updates, Trending Courses & Notes!

Similar Resolved Queries

Unanswered Queries

Popular
Recent

Trending Online Classes

Direct Tax Laws & International Taxation May 26,Sept 26 & Jan 27

CA Arvind Tuli

Enroll Now
Audit Fast Track Recorded Batch For May 26,Sept 26 & Jan 27

CA Aarti Lahoti

Enroll Now
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English

CA Bhanwar Borana & CA Shubham Keswani

Enroll Now

view all classess

Meet our CAclubindia PRO Members

Rasheed Mohd Abdul

BABUSHANKAR BASAPPA

jagadheswar goud

S J MITRA

Anurag Sharma

Subscribe Now

Partner's Remuneration U/S 40(b) of I.T.Act

Similar Resolved Queries

Trending Online Classes

Meet our CAclubindia PRO Members

Quick Links

Browse by Category

Latest Job Openings

Senior Executive

Manager- Finance and Compliance

GST CONSULTANT

GST CONSULTANCY

Accountant

CA Final

Article Assistant

Associate CA