RAJ KUMAR (FINANCE MANAGER) (1393 Points)
09 November 2010HELLO FRIENDS, MY CLIENT DOES THE TRADING OF ELECTRICAL EQUIPMENTS IN PARTNERSHIP
NOW, IN ADDITION TO TRADING THEY PROVIDE LABOUR ALSO BUT IN THE PARTNERSHIP DEED ONLY TRADING BUSINESS IS SHOWN
NOW THE LABOUR INCOME IS THE INCOME OF PARTNERSHIP FIRM OR IT IS THE INDIVIDUAL INCOME OF THE PARTNERS.
PLS. TELL
sahana Murthy
(Student)
(123 Points)
Replied 10 November 2010
Hi
All moneys which come into the bank account have to be explained. You can either regard it as the revenue or take it as the capital introduced by partners (the income will belong to partners) or loan.
There is nothing that debars the firm from carrying on any business. The deed is for the partners for settlement of any future disputes, nature of business is not an issue at all.
Regards
Sahana Murthy
Rahul Agarwal
(Future CA)
(217 Points)
Replied 10 November 2010
Whether TDS is deducted on such labour income or not . PLs check
If the TDS certificate is in the name of Partnership firm , then show it accordingly.
Otherwise as suggested by Sahana.
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