14 September 2010
If remuneration is paid to partners @ the year end & not monthly.As per partnership deed upto 30.9.09 slabs were 75000, 150000 n +....but on 1.10.09 partnership deed changd to new I.T. rates.Say if net profit is 600000 wht shall be d allowable remuneration? Also will the remuneration calculated be as per the deed for 1st 6 months.
15 September 2010
Remuneration increase cannot be retrospective as per section 40(b).
So i think u will have to calculate remuneration on book profit based on time basis unless there is some other alternative way to calculate book profit for each of the six months.
And then calculate remuneration at half the rates i. e. for six months.
CAclubindia
