Does commission/salary to partner

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1359 Points Posted on 05 November 2021
does commission/salary to partner is expense for business ??
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On 05 November 2021 at 20:59 Report
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This discussion clarifies whether salaries and commissions paid to partners are considered business expenses. While both are generally treated as expenses, their deductibility for income tax purposes is subject to specific provisions. The conversation also touches upon profit appropriation, which, although an 'below the line' item, can be allowed as an expense up to certain limits.

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My grammar is 💯 good I
7306 Points Posted on 05 November 2021

I think salary goes to partners current account and appropriation account. Download and save this 2-Ch. (Partnership Firm-Basic Concepts (Ver.-5).pmd (ncert.nic.in)

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On 05 November 2021 at 21:16
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GST Consultant
15986 Points Posted on 06 November 2021

Yes both commission and salary to a partner are expense for the business. However allow-ability of such expense in Income Tax will depend on its provisions.

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On 06 November 2021 at 09:50
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1359 Points Posted on 06 November 2021
Means appropriation of profit is also expense??
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On 06 November 2021 at 09:52
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GST Consultant
15986 Points Posted on 06 November 2021

Yes it is treated as below the line item but it is allowable in Income Tax as expense upto certain limits

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On 06 November 2021 at 09:54

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