Partnership firm Query

This query is : Resolved

akbar (Querist)
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13 January 2011 1. Partnership firm local sale Rs. 640120 and local Purchase approximately Rs. 535,680 kindly tell me about sale tax liability on above transaction done during financial year 2009-10.

2.2. As per Deed remuneration to partner : ( Two Partners run business)
(a) on the first Rs. 75,000 of the book-profit, or in case of a loss
(b) on the next Rs. 75,000 of the book-profit
(c) on the balance of the book-profit
Rs. 50,000 or at the rate of 90 per cent of the book-profit, whichever is more; at the rate of 60 per cent; at the rate of 40 per cent:

Book Profit Rs. 67500 how to calculate remuneration to partners

Plz provide solution on above matter at the earliest.

Regards
Akbar

Ravikant

Ravikant (Expert)
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13 January 2011 1. According to the State VAT you belong to and the rate applicable, you can claim set off of input VAT from the total output VAT payable, the differential alongwith the Interest,etc. will be your liability.

2.The slabs which you have mentioned are not applicable to the F.Y. 2009-10, The deed always have clause which say that the slab mentioned in the deed is subject to change with the amendments in Law. As per new slab, on the first 300000 of book profit or in case of loss, the limit is 150000 or 90% of bookprofit whichever is more and for bal of bookprofit,60%. Hence, if bookprofit is 67500, then the maximum remuneration can be 150000.