Respected All,
I have doubt about remuneration paid to partners.
Firm earned net profit in FY 2020-21 of rs.520000 after interst but before remuneration payable and in previous year i.e.2019-20 firm had unabsorbed depreciation of rs.250000.
So now what is my book profit u/s 40b on which firm can give remuneration.
thanks
Book profit remains 5.2lacs..
Before making payment / provision for depreciation , make sure that there are funds available to make the payment..Else make proper adjustments..
There should be reasonable certainty about the future profits .Else from where you make the payments for remuneration ?
CAclubindia
