Calculation book profit for partner's remuneration u/s 40(b)
This query is : Resolved
18 March 2014
Is this calculation OK?
Book Profit Calculation (For Partner's Remuneration Calculation u/s 40(b):
===================================================
Profit Before Interest, Depreciation & Taxes: 4,00,000
Add: Prov. For Income Tax (Disallowable): 20,000
Profit after disallowables: 4,20,000
Less: Interest to partners @ 12% p.a: 1,20,000
Book Profit: 3,00,000
Book Profit Calculation (For Partner's Remuneration Calculation u/s 40(b):
===================================================
Profit Before Interest, Depreciation & Taxes: 4,00,000
Add: Prov. For Income Tax (Disallowable): 20,000
Profit after disallowables: 4,20,000
Less: Interest to partners @ 12% p.a: 1,20,000
Book Profit: 3,00,000
18 March 2014
Dear Santanu,
In this query, Interest to partners are allowable to the extent 12%. If 30000 are more than 12% then it is correct.
If partner salary allowed in books should be added back.
Otherwise ok.....
In this query, Interest to partners are allowable to the extent 12%. If 30000 are more than 12% then it is correct.
If partner salary allowed in books should be added back.
Otherwise ok.....
18 March 2014
I have used profit before interest, depreciation & taxes (which is also profit before any appropriation).
Then Why should i ADD Prov. of I.T to such profit in calculating Book Profit u/s 40(b)?
Then Why should i ADD Prov. of I.T to such profit in calculating Book Profit u/s 40(b)?
18 March 2014
Dear Santanu,
If you have charged the provision for tax in profit and loss a/c, then it should be added back, otherwise not.
If you have charged the provision for tax in profit and loss a/c, then it should be added back, otherwise not.
13 October 2014
Profit should be taken after Interst and Depreciation
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
- Is this income indian or foreign income?
- RCM applicability on Rent Paid by Registered Person to Unregistered Landlord for Residental Building
- GST on export of services and Input Credit
- ITC temporary reversal and reclaim
- Applicable TDS rate for sale of property in Nov 2024
- Inventory of finished goods
- Confusion around Form 26QB fields
- Quiery in relation to GST liability in case of an advocate who has obtained GST registration.
- Tds on building rent monthly
- Should I report my US salary for January, February, March in Schedule FA?
- BUYING PROPERTY COULD NOT FILE 26QB
- Gst input for FY 23-24
- Regarding Waiver of Interest levied u/s 50 of PGST/CGST Act
- LAST YEAR 2022-23 ITC IN NEXT YEAR 2023-24 REPORITNG IN GSTR-9
- MIS MATCH OF INVOICE NUMBER
- IGST Credit-Show cause notice issued-confusion
- Issue of gst e invoice
- How to adjusted advances given or receipt
- Foreign vendor without PAN unable to to register due to non receipt of OTP on foreign number ?
- 133(6) DIN INVALID format error - ->WHERE TO REPLY 133(6) notice?
Trending Online Classes
CAclubindia
