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Commission paid to other than partners

Tax queries 183 views 3 replies

Govind

Director

22 Points Joined April 2013

Respected Sir/Madam,

I have a partnership that works with consultancy. I want to know that commission can paid to other than partners (A.Y.-2017-18 & 2018-19) ? Last year, we have working less than 180 days, then how to define Remuneration if firm in in loss and loss can be carry forward to nex year.

Thanking you.

Replies (3)

Guest

what mention in patnership deed and also go through income tax act and then decided

PERMISSIBLE LIMIT FOR DEDUCTION OF REMUNERATION OF PARTNER:

Book profit	Amount deductible u/s 40(b) (maximum)
If book profit is negative	Rs. 150000
If book profit is positive
On first Rs. 3 lakhs	Rs. 150000 or 90% of book profit whichever is more
On remaining balance	60% of book profit