19 April 2011
WE HAVE RECENTLY REGISTERED AS FIRM AS SERVICE PROVIDERS.WE ARE TWO PARTNERS IN FIRM. 1.MY QUESTION IS AFTER DEDUCTING ALL EXP OF FIRM,PROFIT EARNED IS SHARED BETWEEN US IN EQUAL RATIO.IS INDIVIDUAL PARTENERS ARE LIABLE TO PAY TAX. 2.IS FIRM IS LIABLE TO PAY TAX.
20 April 2011
Firm is liable to pay tax at 30.9% on taxable income( professional fees - all expenses - interest on partner's capital at 12% p.a. - partner's salary upto the limit specified in Income Tax Act. )
Partner's are required to pay taxes on interest on partner's capital at 12% p.a. + partner's salary upto the limit specified in Income Tax Act + any other income if they have
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