tax planning

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CA Praveen Chopra (Querist)
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13 September 2008 Whether a company is beneficial to form or a partnership firm under the following circumstances.

Unit is to be established in SEZ where 100% exemption is there and unit intends to distribute it`s profits to promoters/partners.

As far as my opinion is concerned,partnership firm is better becoz in company case,dividend distribution tax is applicable.

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Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)
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13 September 2008 I AGREE WITH YOUR FINDINGS.

Late CA Sampat Jain

Late CA Sampat Jain (Expert)
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13 September 2008 PARTNERSHIP FIRM WILL BE BETTER

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sivasankar

sivasankar (Expert)
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16 September 2008 But Banks prefer companies because dissolution cannot go ahead without court interference.
If have all the capital from your internal accruals and If you think you need not go for loan then firm is tax efficeint.