AKSH KUMAR (CHARTERED ACCOUNTANT) (99 Points)
14 April 2010THE TOTAL INCOME OF AOP FOR THE PREVIOUS YEAR ENDING 31-03-2010 IS RS. 600000. IT HAS 3 MEMBERS i.e. R LTD.(A FOREIGN COMPANY) AND TWO RESIDENT INDIVIDUALS S & G. THE SHARE OF PROFIT OF THE MEMBERS FROM THE AOP IS NOT KNOWN.
COMPUTE THE TAX PAYABLE BY AOP AND TREATMENT OF INCOME IN THE HANDS OF FOREIGN COMPANY & TWO RESIDENT INDIVIDUALS SEPRATELY.
Amir
(Learner)
(4016 Points)
Replied 14 April 2010
Dear Aksh,
Brilliant one brother.............!
This was the doubt which came to my mind when I first read the taxability of AOP..
Entire Income of AOP will be taxed @ 40% {Proviso to Sec 167B.}
Further this Income will not be taxable in the hands of members of AOP {Proviso to Sec 86}
AKSH KUMAR
(CHARTERED ACCOUNTANT)
(99 Points)
Replied 15 April 2010
Dear Amir, thanks for answering but one more question come to my mind that what will happen when the share of profit is definte among the members.
please relpy soon
AKSH KUMAR
(CHARTERED ACCOUNTANT)
(99 Points)
Replied 15 April 2010
Dear Amir Sir,
i found the section to which you r refering it reads as follows
Charge of tax where shares of members in association of persons or body of individuals unknown, etc.
75167B. (1) Where the individual shares of the members of an association of persons or body of individuals (other than a company or a co-operative society or a society registered under the Societies Registration Act, 1860 (21 of 1860) or under any law corresponding to that Act in force in any part of India) in the whole or any part of the income of such association or body are indeterminate or unknown, tax shall be charged on the total income of the association or body at the maximum marginal rate :
Now my question is still on what if share of members are known then what will be the rate of tax on such AOP.
In my personal view that should taxed @ 30%
Amir
(Learner)
(4016 Points)
Replied 16 April 2010
Dear Aksh,
If shares of the Members are known Subsection (2) of Sec 167B shall take affect - share of Forreign Co. shall be taxable @ 40% & balance Income shall be taxable @ Maimum Marginal Rate i:e 30%
LIVE Course on Foreign Exchange Management Act (FEMA)(with recording)
LIVE Course on Foreign Exchange Management Act (FEMA)(without recording)
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