Dear Sir / Mam,
As per Accounting Standard 27, There are three ways in which an agreement can be entered for a joint venture i,e JCO, JCA & JCE.
One can form a seprate entity with the option JCE, but forming a seprate entity like company, firm will lead to double taxation, one to the entity & other to the venturer(i,e share of income from jointventure).
I just want to confirm that is there any relief for the above matter. if not why one will enter Joint Venture with JCE.
I am not pretty sure of this, but there is not mucj=h of an disadvantage in having a separate entity other than legal compliances and administrative expenses..
The share of profits wont b taxable in most cases and if there is somer double taxation due to the the JV being in a different tax jurisdiction, then the DTAA must be having something for the venturers.
Please further clarify ur doubt in case it is not resolved.
Sanath Sheshagiri & Co.
Bengaluru
CA Inter
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