U/S 44AD
A partnership firm went for 44AD. then suddenly one of partner came to know that remuneration to partners is not allowed to be claimed. then he thought for some while and came to conclusion that....
Firm will pay tax on T/O that means their remuneration also taxed @ 8 % ( or 6 % as the case may be )
Then again they will pay tax to income tax for remuneration received because it is not share of profit but a remuneration.
then he suddenly jumped from his luxurious chair and yelled "Double taxation?"
is he right ???
CAclubindia
