Section 44ad
This query is : Resolved
17 March 2012
If a partnership firm claim his profits u/s 44AD I.e. 8% of gross turnover... Then can it claim remuneration to partners separately after taking profits equal to 8% of turnover....?
Guest
Guest
(Expert)
17 March 2012
Deduction for partner's remuneration will be allowed in such case. Deduction under section 30 to 37 are deemed to allowed in such case where as partner's remuneration is allowed under section 40b.
17 March 2012
Yes, it can separately claim partners' remuneration i.e. after calculating 8% of profits on gross turnover; remuneration can be deducted and tax is to be paid thereon.
Message likes :
1 times
17 March 2012
Thanks for rep sir....
But after providing remuneration the profit will decrease from 8%, then shall the liability of tax audit arise on it....?
Because acc. To sec 44 AB if the assessee claim the net profits below 8% of turnover then tax audit is mandatory in that case..
And here is net profits not the book profits...
But after providing remuneration the profit will decrease from 8%, then shall the liability of tax audit arise on it....?
Because acc. To sec 44 AB if the assessee claim the net profits below 8% of turnover then tax audit is mandatory in that case..
And here is net profits not the book profits...
17 March 2012
No.
.
In the instant case; the assessee is not showing net profits below 8%.
.
The remuneration to partners are specifically allowable under the statue.
.
Conceptually; these are distribution of profits.
.
In the instant case; the assessee is not showing net profits below 8%.
.
The remuneration to partners are specifically allowable under the statue.
.
Conceptually; these are distribution of profits.
Message likes :
1 times
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?
- ITC temporary reversal and reclaim
- GST on export of services and Input Credit
- RCM applicability on Rent Paid by Registered Person to Unregistered Landlord for Residental Building
- Inventory of finished goods
- Applicable TDS rate for sale of property in Nov 2024
- Confusion around Form 26QB fields
- Sale of property furniture sale
- REGARDING 25 AS DATE OF PAYMENT AND DATE OF BOOKING
- Quiery in relation to GST liability in case of an advocate who has obtained GST registration.
- 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
