Pl let us know about providing interest compulsory on Partner capital even firm was in loss during year 2010-11 & 2009-10
SANJAY AGARWAL (PROPRIETOR) (34 Points)
24 May 2011Pl let us know about providing interest compulsory on Partner capital even firm was in loss during year 2010-11 & 2009-10
Saurabh Aggarwal
(Chartered Accountant)
(371 Points)
Replied 25 May 2011
Yes interest on partners capital can be provided even in the case of loss provided the same has been provided in the partnership deed. Moreover the rate of interest can not exceed 12%p.a.
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