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firm use 44ad

srikumar (audit staff) (1203 Points)

05 July 2019

sir, my client firm gst sales RS.130000 only so I am use 44ad for firm at 8 percent. rs10400 as netprofit and tax is 3250. now firms as lower sales so partner salary and interest will not provide sir.
is it correct above method sir ?

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8 Replies

RAJA P M ("Do the Right Thing...!!!") (128091 Points)
Replied 05 July 2019

If opt to 44ad then no way for book Partners Remuneration & Interest in any of the Turn over value...

Share the profit amount to partners account as per their share ratio...

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srikumar (audit staff) (1203 Points)
Replied 05 July 2019

ok sir, above method is correct or incorrect sir

RAJA P M ("Do the Right Thing...!!!") (128091 Points)
Replied 05 July 2019

As per Your query (and your view is Correct.)

But, I think You are not get 44ad related details)

srikumar (audit staff) (1203 Points)
Replied 05 July 2019

sir, what 44ad related details, I am not understand

RAJA P M ("Do the Right Thing...!!!") (128091 Points)
Replied 05 July 2019

Details means act or provisions...

as per sec 44ad partners can't claim Remuneration and interest. That's all.

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srikumar (audit staff) (1203 Points)
Replied 05 July 2019

NOT MANDATORY FOR CLAIM PARTNERS SALARY & INTERST ON CAPITAL, IF DEED IS SPECIFIED SIR, BECAUSE INSUFFICIENT SALES SO NO SALARY & INTEREST ON CAPITAL SIR. IF NEXT YEAR SUFFICIENT SALES I WILL PROVIDE SALARY & INTREST SIR