Sanjayzany (practice) (39 Points)
10 September 2009a pvt ltd company entered into partnership and the firm will develop land .In the deed it is mentioned that the land which is shown as stock in trade shall be tretted as capital contribution by the partner .Plz let me t he know the accounting entries to be passed in the p ltd co. and i tax imlication .
Thanks
santhosh
(CA)
(636 Points)
Replied 11 September 2009
Its Investment for the Company, Seperate disclosure in FS since the co is a partner in the frim. Investment in Partnership X& Co A/c Dr
Cr Bank A/c.
As far as taxation is concerned firms profit is shared by partners is exempt,but any comission,interest received by the company will be taxable in the hands of company to the extent it is allowed u/s 40 B in the hands of firm.
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