Partnership firm
This query is : Resolved
20 September 2012
Dear Sir,
A partnership firm whose net profit @8% u/s 44ad is Rs. 175000/-.
Whether the said firm can give interest @12% on capital of Rs. 100000/- employed by partners or it would not be allowed u/s 44AD ?
Please advise me.
A partnership firm whose net profit @8% u/s 44ad is Rs. 175000/-.
Whether the said firm can give interest @12% on capital of Rs. 100000/- employed by partners or it would not be allowed u/s 44AD ?
Please advise me.
20 September 2012
Deduction of partner's remuneration and interest on capital is allowed separately from the income declared u/s 44AD.
Accordingly, interest on partner's capital can be paid.
Accordingly, interest on partner's capital can be paid.
20 September 2012
Suppose Capital is Rs. 2 lacs, which was employed by partner in cash. Still the firm is entiled to give interest on said capital or not.
20 September 2012
Yes, firm is entitled to give interest on such capital.
OM SAI SRI SAI JAI JAI SAI
OM SAI SRI SAI JAI JAI SAI
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 our of sec 44AD
- GST Treatment of Insurance Commission for Existing GST Holder
- SALE OF MOTOR CAR BY REGISTERED INDIVIDUAL
- Multiple trade mark
- Transporter Declaration form
- Regarding TDS Applicability For Director Remuneration
- LC charges in relation to Asset purchased should be Capitalised ?
- Value of property in capital gain
- Regarding appeal to GSTAT
- Copyright software
- Invoice V/S Goods receipt Note Date
- Form 121 & TDS deduction
- Cash gift by grand mother to her grand daughter
- Tax amount diff in Gstr1 and 3B in tax compare reports
- Tds on GST in connection with sale to public company
- Restoration of certificate of practice
- Regarding change in correspondence address in SSP portal
- No Compliences after incorporation
- USEFUL LIFE OF USED/SECOND HAND COMMERCIAL VEHICLES
- Claiming TDS deducted by builder on Hardship compensation and Corpus
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
CAclubindia
