07 August 2012
one of my client being a Partnership Firm having four Partners engaged in Manufacturing activities.The Factory Premises are in the name of 2 partners jointly & the same has been given to PF on rent as per rent agreement between Partners & PF.
Now query is as under:- i)Whether Factory Rent is to be provided/ accounted for in Partnership Firm books by means of direct crediting to each partner's capital account equally & debiting to Factory Premises rent at the end of F.Y.through JV as per rent agreement or not.
Moreover the same is admissible as allowable expenditure or not in the hands of PF as per I.T. Provisions.
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