Book Profit - partners remuneration
This query is : Resolved
10 July 2011
Which is the Book Profit to be considered for calculating partners remuneration?
10 July 2011
Gross Profit & Other P&L Income....450000
Less:..... Business Expenses .......50000
Balance of profit .................400000
Less:
.
Interest to Partners....... 30000
.
Book Profit........................370000
Remuneration will be calculated on the basis of 370000/
Less:..... Business Expenses .......50000
Balance of profit .................400000
Less:
.
Interest to Partners....... 30000
.
Book Profit........................370000
Remuneration will be calculated on the basis of 370000/
Message likes :
2 times
11 July 2011
Whether disallowances are also added back, and then the remuneration is calculated?
Regards,
Devendra K
Regards,
Devendra K
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/
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/
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- USE THE BANK ACCOUNT OF WIFE
- If ITC not claimed is there any issue
- Benefit of employee
- Place of supply or billing addres which applicable for tax
- CAPITAL GAIN IN NEW REGIM
- Capital Gain Tax on Foreign Citizen
- GST ITC to Garment dealers
- REBATE UNDER SECTION 54 FOR SHORT TERM CAPITAL GAIN
- TAN Applicability For Individual & HUF
- List of Exampted Allowance or head of income for salaried employees after 2025 budget
- Special resolution for sale of property by pvt ltd co.and its subsidiary
- GST Credit Reversal for change in GST Rate.
- Rectification of Mistake in AOC4
- GST on Medical insurance preimum
- GST under RCM paid at which rate
- TDS on repair charges done on exported Goods in Korea
- Form 26AS dosnot contain the amount of TDS/TCS with respect o TAN mentioned in scheule TDS 1/TDS 2/
- Refund of VAT ITC due to Evaporation loss.
- ITC on IGST
- TDS on Sale of Properties
Trending Online Classes
-
25 Hours GST Scrutiny of Return and Notice Handling(With Recording)
Industry Expert04 February 2025
CAclubindia
