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.
Naveen Fintech Pvt Ltd
Kolkata
CA Inter
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Gupta Sachdeva & Co. Chartered Accountants
New Delhi
CA Final
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CAclubindia
