If in my firm there is no profit and no loss because there is only WIP, am I allowed to claim the interest on capital and whether the same can be allowed to be included in my Closing WIP as an allowable expenditure.
Also what if the Book Profit is "Zero" i.e. No Profit and No Loss, am I allowed to claim salary to the tune of Rs 1,50,000/-, I being a working partner. As in case of WIP above, I have only closing WIP and No Profit No Loss??????
11 September 2012
You can claim both the interest on capital and Remunetion to Rs. 150000. It is your discretion whether you will add these sum with Closing WIP or claim as loss.
CAclubindia
