can any one plsese give me an example on remuneration to partners. if firm inccurs loss still have to give remuneration .if the book profit is less than 3lac then how will be the calculation .please can any one explain
13 Replies
Ruchika Somani
(Coaching and Practice in Tax Audit Law)
(4429 Points)
Replied 10 August 2018
on the first Rs. 3,00,000 of the book-profit : Rs. 1,50,000 or at the rate of 90 per cent of the book-profit, whichever is more;
on the balance of the book-profit : at the rate of 60 per cent
Salary in case of loss will not be given
Rakesh Bandal
(Self Employed and Agriculture)
(1349 Points)
Replied 10 August 2018
as per section 40(b)
1. In case of loss remuneration will be Rs 150,000/-
2. if book profit is less than Rs 300,000/- then 90% of Profit or Rs. 150,000/- whichever is higher
Note : if you declare profit less than 8% or 6% then need to get accounts audited
pavel
(student)
(473 Points)
Replied 10 August 2018
i think its only when we file pur return on presumptive baisis ..
Ruchika Somani
(Coaching and Practice in Tax Audit Law)
(4429 Points)
Replied 10 August 2018
No, its compulsory for all partnership firms
Prakash Gehani
(Consultant & Teacher(Whatsapp 8718057907)
(1306 Points)
Replied 10 August 2018
If you file return on profit calculated on presumptive basis, then remuneration is not allowable.
pavel
(student)
(473 Points)
Replied 10 August 2018
supose a firm has inccured loss then remunertaion payable to both the partners will be 75k each which together will amount to 150k and no need of audit . is this is right .
Ruchika Somani
(Coaching and Practice in Tax Audit Law)
(4429 Points)
Replied 10 August 2018
| Originally posted by : pavel | ||
 |
supose a firm has inccured loss then remunertaion payable to both the partners will be 75k each which together will amount to 150k and no need of audit . is this is right . |  |
yes
Ruchika Somani
(Coaching and Practice in Tax Audit Law)
(4429 Points)
Replied 10 August 2018
| Originally posted by : pavel | ||
|
supose a firm has inccured loss then remunertaion payable to both the partners will be 75k each which together will amount to 150k and no need of audit . is this is right . | |
yes
Aparmay
(Article)
(62 Points)
Replied 12 August 2018
I think you need to get your BOA audited as per section 44AB if u do not suffice (8/6)% criteria even though u pay remuneration to partners.
It has happened to many partnership firms during ITR season that is why they are in the slab of Tax Audit.
(Correct me if i am wrong).
Thanks
pavel
(student)
(473 Points)
Replied 12 August 2018
here the grooss reciept is only 80k and after all the expenses net profit is only 4k . this means its books are required to be get audited .
Aparmay
(Article)
(62 Points)
Replied 13 August 2018
If it comes under Professional Services then 44ADA will be applied(as u talk about Gross Receipts).
&
Normally, 44AD can be considered and BOA needs to be audited.
pavel
(student)
(473 Points)
Replied 13 August 2018
yes it proivdes services and its gross reciept is 80thousand and net profit is 4-5thousand ..so its reqired to be audited am i right ...
Rakesh Bandal
(Self Employed and Agriculture)
(1349 Points)
Replied 17 August 2018
Yes , as per my erlier reply you need to get accounts audited if profit decleared is less than 8% or 6%
Payment of remuneration or not in another part
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