Suitability of proprietorship & partnership

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

19 August 2014 An assessee has partnership firm having 3 partners and a sole trading concern.Audit u/s 44AB is applicable to both.Assessee wants to continue only one entity.Which one should be continued?

CA UMESH DULAL

CA UMESH DULAL (Expert)
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19 August 2014 1. rate of tax of partnership firm is higher than proprietorship.
2. there is pooling of resources in partnership.

so you have to choose on the basis of your need.

CA UMESH DULAL

CA UMESH DULAL (Expert)
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19 August 2014 1. rate of tax of partnership firm is higher than proprietorship.
2. there is pooling of resources in partnership.

so you have to choose on the basis of your need.

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