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Commission paid to other than partners

Tax queries 204 views 3 replies

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)

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
yeah commission can be paid to other than partners also

To carry forward loss, the income tax returns should be filed before due date.

commission above 15000/- can be paid to others subject to TDS


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