Urgent question on Partnership

i will advice to open Partnership as it has less legal implication 

and all intt and salary both will be allowed to them,,,,,,,,,,,,,,,,,,,

I will too suggest to go for Partnership with less legal formalities, interest will be allowed as dedution to the firm and partners will have to pay according to the slabs (no interest is allowed on Share Capital For a Company), the profits distributed to the partners are tax-free while if Dividends are given by a Co. then you will have to pay Corporate Dividend Tax over and above Income Tax on Profits. The salary will be allowed in both the case whether as working partner in the firm or as director in the Co.

But I suggest for Comapny as this will help in expansion of activities, SOUNDS DAM GOOD WEN U SAY U R THE DIRECTOR OF A COMPANY  and also company is always preferable than partnership in terms of revenue, goodwill and going concern concept of the company.

I will too suggest to go for Partnership with less legal formalities, interest will be allowed as dedution to the firm and partners will have to pay according to the slabs (no interest is allowed on Share Capital For a Company), the profits distributed to the partners are tax-free while if Dividends are given by a Co. then you will have to pay Corporate Dividend Tax over and above Income Tax on Profits

As Partnership

Book Profit                                                         1800000

Less Salary

First 3Lac-90% or 150000                               (270000)

Bal 15 Lac-60%                                                  (900000)

                                                                               630000

Less Interest (A+B)                                           (240000)

NP                                                                         390000

Tax liability 30.9%                                               120510

                                A                             B

Salary                    315000                  315000

Interest                  120000                  120000

Income                 435000                  435000

Tax                         28325                    28325

Total Tax Paid   120510+28325+28325=177160

As Company

Profit                     1800000

Less Salary          (360000)

                                1440000

Tax                         444960

DDT                    240000*16.609%=39860

Total Tax            444960+39860=484820

                A                             B

Salary 180000                     180000

Tax      2000                          2000

Tax Tax Liability (Co.+A+B)= 4000+484820=488820

Please correct me if i am wrong

nice job prateeek, while u r computing tax of partnership. you have taken salary paid to partners11.7 lacs,but  as per sec.-40(b),it is the maximum amt. that can be allow as deduction,but as per sec.-184,the amt. you can claim as deduction which u described in partnership deed. so the treatment are as follow:-

Book Profit                                                                                          1800000

Less Salary

First 3Lac-90% or 150000                                  270000

Bal 15 Lac-60%                                                  900000

Maximum allowed salary                                            

as per sec.-40(b)                                               11,70,000                                

Less:- Actually Allowed 

15000x12x2

subject to section-40(b)                                                                      (360000)                                                                                            

Less Interest                                                                                      (240000)  

NP                                                                                                   12,00,000   

Tax liability 30.9%                                                  3,70,800

                                A                             B

Salary                    180000                  180000

Interest                  120000                  120000

Income                 300000                  300000

Tax                        14,420                    14,420

Total Tax Paid    3,70,800+14,420 +14,420 =3,99,640

HI..... frnds

Tell me the procedure of purchase from one party and billining to another party,which form is used for this type of Purchase

I m donig the audit of Export house recently registered under Partnership Act,

The company has two brances 1 is in Gurgaon & the other one is in Calcutta

There is one party who purchase the material from calcutta but billing of material is done here.

Is it possible ? Pls tell me

and if yes, then tell me the forms used in that procedure.

Pls repy as earlier as possible

Thanks

CALCUTTA BRANCH WILL RAISE STOCK TRANSFER IN GURGAON BRANCH NAME AND GURGAON BRANCH WILL SAME RECD SAME STOCK AGAINST F FORM AND THEN BILLING TO ANY PARTY FROM GURGAON CAN DONE HERE……..

FIRST SEE F FORM IS THERE OR NOT……

Can a Individual/Partner provide loan to a partnership Firm in cash...how can we do  this ...is there any limt we should consider?