Partner Salary

Dear Amar,

It is 1,50,000/- or 90% of the book profit whichever is more.The Sharing ratio is not played any role for remuneration. Only the Working partners are eleigible for remuneration.

with regards

Agreed with Kanagaraj Ji..

In this case, It will be -- 

Lower of the two -

1.Sum Actually paid as salary.

2. Higher of the two -

(i) 150,000

(ii) If profits are upto 300,000 then 90 % of profits.

In simple words,we can conclude that maximum salary that can be paid to any working partner(s) in this case is 198,000.

MAXIMUM SALARY WILL BE RS.198OOO AS CALCULATED ABOVE...................BUT IS THERE MINIMUM SALARY. FOR EXAMPLE WHAT IF MAX. SALARY CALCULATED IS RS.198000 BUT FIRM IS PAYING NO SALARY OR ANY AMOUNT LIKE RS. 50000.IS THIS PERMISSIBLE............................

Originally posted by : upjeet s. bhatia CA FINAL ST.
	MAXIMUM SALARY WILL BE RS.198OOO AS CALCULATED ABOVE...................BUT IS THERE MINIMUM SALARY. FOR EXAMPLE WHAT IF MAX. SALARY CALCULATED IS RS.198000 BUT FIRM IS PAYING NO SALARY OR ANY AMOUNT LIKE RS. 50000.IS THIS PERMISSIBLE............................

 Pls Read the Method :

Lower of the two -

(1.)Sum Actually paid as salary.

(2.) Higher of the two -

(i) 150,000

(ii) If profits are upto 300,000 then 90 % of profits

If no amount or 50,000 is paid, it falls in (1.) above.So no deduction or 50,000.

I hope it clarifies.

The maximum salary is prescribed under the Act. You may pay the salary or not it is your choice only.

with regards

If firm has earn profit during the fiancial year 2010-11 Rs. 4000000/- what is the partners maximum remunerarion if firm has three partner having ratio of profit equal?

On first300000,150000 or 90% of300000 whichever is higher (ie.270000) 

On balance(Rs. 4000000 -300000) =3700000 x 60% =2222000.

Therefore, maximum Salary payable is (Rs. 2222000 +2700000) =2490000

The maximum remuneration paid to each partner is830000.

Regards,

Devendra

If Profit of a firm = 62000/- SO how what will be the minimum Salary 

1) Rs. 150000/- or

2) Rs.62000/- Or

3) Nil

if Rs. 62000/- is distrbute is it allowed as per I.Tax Act.

30/11/2012

Hey in form 23AC Gross transaction amount as per AS-18

which amount is to be written over here the total of transaction with related party or the aggregate balance in their account

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