27 November 2016
dear all,
if partnership firm taken loan rs.5cr from financial institute for construction of factory premises and the same amount give to loan in Pvt Ltd company as a loan. also factory premises given on rent to Pvt Ltd company
1-EMI paid by partnership firm rs.9 lacs.
2- partnership firm received rent from Pvt Ltd co rs.9 lacs (4lacs rent and 5 lacs as a interest)
is tax liability by partnership firm
28 November 2016
EMI part includes both interest and principal portion only interest portion can be claimed as expenditure. So 9 lakhs after adjustment of interest will be taxable.
Loan taken for construction should be utilized for that purpose.
VK
CAclubindia
