Provision of factory rent in books
This query is : Resolved
07 August 2012
one of my client being a Partnership Firm having four Partners engaged in Manufacturing activities.The Factory Premises are in the name of 2 partners jointly & the same has been given to PF on rent as per rent agreement between Partners & PF.
Now query is as under:-
i)Whether Factory Rent is to be provided/ accounted for in Partnership Firm books by means of direct crediting to each partner's capital account equally & debiting to Factory Premises rent at the end of F.Y.through JV as per rent agreement or not.
Moreover the same is admissible as allowable expenditure or not in the hands of PF as per I.T. Provisions.
Now query is as under:-
i)Whether Factory Rent is to be provided/ accounted for in Partnership Firm books by means of direct crediting to each partner's capital account equally & debiting to Factory Premises rent at the end of F.Y.through JV as per rent agreement or not.
Moreover the same is admissible as allowable expenditure or not in the hands of PF as per I.T. Provisions.
07 August 2012
yes admissible subject to sec. 40A(2). n u can directly credit it in respective partners' capital accounts.
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
- Section 54F - Exemption on LTCG in 2026 for HP purchased in 2023
- STCG....................................................
- Sales return eway bill
- TAN for Partnership
- AMOUNT RECEIVED UNDER COMPULOSRY ACQUISITION OF AGRICULTURAL LAND
- Long Term Service award taxability in hands of company
- Is E Way Bill Valid If Transport ID Not Mentioned in PART A But Vehicle details mentioned in PART B
- Loan by Partnership Firm
- AY 26-27 ITR-4 FILING U/S 44-ADA
- Plot of land. Cost of Acquisition
- Standard Deduction claim for EPFO Pension and ICICI Prudential Life Annuity
- Sales amount in Gstr1
- CG after sale of flat
- E Commerce GSTR1 & 3B how to file
- Nomination of Bank for refund in itr 2
- GST Cancellation without jurisdiction
- Legal Opinion on Registrar's Refusal to Investigate a Society for Non-Renewal and Non-Compliance
- GST Refund_RFD-01
- Form10BD was uploaded successfully without any Error but after 24 hours, Form10BE are not available
- Annexure B utility for GST Refund
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
