Partnership firms

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harsh (Querist)

15 August 2011 a partnership firms, purchase some thing for rs 100 and sells for rs 500, earns flat 400/- each on the product. now on volume's front yearly profit of rs 5 lakhs for firm, but the expenses for delivery of the product to clients place is borne by the firm say rs 1 laks for the entire year, should this be mentioned in the bill, "delivery to the consignee via the firm" [kindly suggest an appropriate word]. and bills for the petrol should be collected by the firm if yes the bill should be collected via the petrol-pump in the name of partners or firm?
further the key question is wheter an exemption in the bracket would be levied from the deduction of the said charges?

What are the ways via which cost's could be showed to lower the bracket of the firm or partners.'

CA Saiyum khan

CA Saiyum khan (Expert)

16 August 2011 Transportation charges paid by the firm for delivering goods to consignee can be charged to P&L A/c. Further any petrol bill related to firm can be take in the name of the firm. Other overheads may be salary, telephone expeses, stationary and printing etc. can be debited in P&L a/c and only on the balance profit tax liabilities has to be calculated.

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