Can any one please let me knw how will be two companies entering into a joint venture shall be taxed i.e shall they be taxed as AOP or something else??? Also let me knw the treatment of following in the above case from taxation point of view: fixed sum paid by one venturer to other in case of loss....
Please let me know as soon as possible....
Thanks & Regards
Ashish
1st of all we have to see for a venture did they create any new company or working thogether for the project and the project is on the both name....pls clerify this
Depending on the tax planning options the venturers may decide to show the business as a AOP or tax it individually in the hands of each venturer in the ratio of their JV..
If it is not assesseed as a AOP money paid by one venturer to another to tide over a loss will be considered as income and will be set off against the loss of that venture it self..
CAclubindia
