Upgrade and Save: Get 10% OFF on CAclubindia Pro Subscription! Use Code: SAVE10 Subscribe Now!

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 ?

Reply
Follow
Share

8 Replies

RAJA P M ("Do the Right Thing...!!!") (127977 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...

Upgrade to CAclubindia Pro. Subscribe Now!

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...!!!") (127977 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...!!!") (127977 Points)
Replied 05 July 2019

Details means act or provisions...

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

Upgrade to CAclubindia Pro. Subscribe Now!

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