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Remuneration to Partners

This query is : Resolved 

Can the Profit on Sale of Depreciable Building be considered for the purpose of calculation of Remuneration as the block has become nil.

Yes, such profit can be considered for the purpose of calculating remuneration to partner.

Sir, I want to draw your attention to Sec 50 which will be applicable in case of sale of depreciable assets. Which says it will be short term capital gain and taxable under Sec 50 and not PGBP so it can not be used for payment of remuneration

Sir, I want to draw your attention to Sec 50 which will be applicable in case of sale of depreciable assets. Which says it will be short term capital gain and taxable under Sec 50 and not PGBP so it can not be used for payment of remuneration

Short term capital gains of business assets will be business profit credited to p&l account.

Sir it will be credited to profit and loss account but we have to take it to capital gain so book profit will decrease . Sir any case law for reference

Agree with your views it's short term capital gains not to considered as business income for the purpose of calculating remuneration to partners.



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