Rent received from plant & machinery
19 July 2019
A partnership firm has been running a factory of freezing and processing. Just because of losses the firm has given the whole plant and machinery on rent to a pvt ltd company. Whether the partnership firm can treat rental income as business income. The partnership firm is booking the below given expenses such as depreciation, salary, remuneration to working partners, interest on capital. Please guide me and oblige.
20 July 2019
Yes, the partnership firm can treat rental income as business income and book the above mentioned expenses.