11 July 2011
Yes, Devendra, you have to include the items disallowable for calculating the remuneration as such items are taxable and as such form part of the book profit.
11 July 2011
Yes, Devendra, you have to include the items disallowable. See the modified Example- Gross Profit & Other P&L Income....450000 Less:..... Business Expenses ........50000
Balance of profit .................400000 Add: Provision for Income Tax (Disallowable) 20000 Profit after Disllowables ..........420000 Less: . Interest to Partners.............. 30000 . Book Profit........................390000
Remuneration will be calculated on the basis of 390000/
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