Interest on capital

AN LLP IS CARRYING 2 BUSINESSES - ONE IS THE TEXTILE AND ONE IS COLD CHAIN FACILITY BUSINESS. THE PARTNERSHIP AGREEMENT AUTHORIZES PAYMENTOF INTEREST AND SALARY WHICH ARE DEBITED TO PROFIT ABD LOSS ACCOUNT. THE DEED AUTHORIZES PAYMENT OF INTEREST ON CAPITAL CONTRIBUTED TOWARDS TEXTILE BUSINESS ONLY.  

THIS QUESTION IS IN PRACTICE MANUAL OF DT OF ICAI - Q NO.12 JAN 2017 EDITION.

MY QUESTION IS THAT WHETHER INT ON CAPITAL IN RESPECT OF COLD CHAIN FACILITY BUSINESS IS ALLOWABLE OR NOT?

Replies (2)
Cold chain facility business is exempted under sec 35AD therefore if I am right then interest on capital of cold chain facility business is also exempted

https://resource.cdn.icai.org/31412sm_dtl_finalnew-vol3-may-nov14_cp13.pdf

please read question no 12 of the above mentioned link chapter

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register  

Company
ARTICLESHIP 17 August 2026
Article Assistant

K R Kiran Kumar & Associates

Bengaluru

CA Inter

View Details
Company
17 August 2026
Chartered Accountant with US GAAP Experience

Austin Med Solutions Pvt Ltd

Bengaluru

CA

View Details
Company
27 August 2026
ACCOUNTANT

CHARUPREETI & CO

Noida

Graduate (Any)

View Details
Company
08 September 2026
Semi-Qualified Assitant

Subrahmanyam & Sivudu CA Firm

Hyderabad

CA Inter

View Details
Company
28 August 2026
Assistant Manager

NRS AND ASSOCIATES

Kozhikode

CA Inter

View Details
Company
14 August 2026
Semi Qualified

Goyanka & Associates

New Delhi

CA Inter

View Details
Company
24 August 2026
Semi-Qualified CA/CA Finalist - Tax, GST, Audit & Accounts

Bharat Shah & Associates

Mumbai

CA Inter

View Details
Company
18 August 2026
Audit Assistant - Remote / Work From Home

CA ANOOP P K & ASSOCIATES

Kozhikode

CA Inter

View Details