20 May 2016
there is no any inverse provision as such for giving loan. So long as the deed of partnership empowers the partners so to do, the BUSINESS loan may be given as per the rules of trade.
20 May 2016
you can give loan but for what purpose, due to business its easy, otherwise you have to face many question form income tax deptt. please take care regarding the rate of intt.
20 May 2016
you can give loan but for what purpose, due to business its easy, otherwise you have to face many question form income tax deptt. please take care regarding the rate of intt.
Querist :
Anonymous
Querist :
Anonymous
(Querist)
20 May 2016
actually ABCD firm is incurring all the expenses on behalf of Firm EFGH. ie: daily expenses of firm EFGH are booked in the books of firm ABCD books.
In the books of ABCD the total amount is Rs. 5.40 lacs on account of expenses of firm EFGH which will be recovered from EFGH once they will start earning sufficient income.
20 May 2016
pls clear the arrangement between the partner ship firms.
Querist :
Anonymous
Querist :
Anonymous
(Querist)
20 May 2016
Firm ABCD is running since last 5 years...having 4 partners A/B/C/D Firm EFGH is running since last 1 year only...having 4 partners E/F/G/H
All the partners of EGFH are relatives of ABCD.
RIght from the begining of EFGH firm....all the expenses of EFGH are incuured by ABCD firm only.....
in the books of ABCD following entries are being done- EFGH a/c Dr.... To Cash/Bank because there is no books are yet opened for EFGH firm.
Now query is that is there any tax complication in the books of ABCD firm to show such a huge amount of Rs. 5.40 Lacs on b/s date?