If a company is partner in a firm,then the representative of the company is entitled to remuneration and is it allowed under income tax?.
If it is allowed how it is to be presented in the partnership deed?
3 Replies
Giridhar S Karandikar
(Team Lead)
(7548 Points)
Replied 17 March 2019
not the representative but the company itself is entitled to receive the remuneration because the company in it's own is the partner in the firm and not the representative of the company.
also company being a artificial judicial person it has its own separate legal entity .so whatever company does is for itself and not the representative.
also company being a artificial judicial person it has its own separate legal entity .so whatever company does is for itself and not the representative.
SHIVANI KUDTARKAR
(511 Points)
Replied 18 March 2019
under Income Tax Act, remuneration is allowed only to the working partner and company being artificial judicial person can not be a working partner. in my opinion, remuneration paid to company is not allowed under IT Act
CA Chandra Prakash
(9873059766 Increasing knowledge through sharing)
(296 Points)
Replied 18 March 2019
agreed with @ shivani
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