is provision for tax is allow for the computation of book profit for partnership firms
1 Replies
sanjay singhal
(CA)
(987 Points)
Replied 26 July 2013
Book profit is calculated as under :
1. Find out net profit as per profit & loss a/c
2. make adjustment as provided by sections 28 to 44AD
3. Add remuneration to partners if debited to profit & loss a/c
As per section 40(a)(ii) Any sum paid on account of income tax is not deductible.
As per section 43 B unpaid statutory liability allowed on payment basis only.
If u are talking about Income tax provision it is not allowed.
If u are talking about other taxes it can be deducted if paid subsequently.
CA Sanjay Singhal
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