taxation of joint venture

CA Abhishek Singh (practice) (2106 Points)

09 May 2011  

one of client(individual) entered into a joint venture with another individual for development of plot. as per jv agreement both will develop the building on the said plot. plot is owned 60% by our client and reamaining 40% by other party. profit sharing ration will be 60:40 ie. 60 to our client and 40 to other party.

is PAN & TAN Necessary for JV. Is TDS deductible by the JV on payment of remuneration/interest/share in profit to the coventurer ??

 

However stamp duty paid only Rs.500/-. In my opinion it should have been 1% of the market value of the property as per Bombay Stamp Act which comes to Rs.50000(5000000*1%). in such a situation is the agreement valid ? if it is invalid then what can be done to make it valid now. agreement executed in february 2011.

 

plz. compute the tax payable by firm and the member as per following information.

 

net profit of aop- Rs.10,00,000/-
remuneration paid to coventurer A & B -Rs.3,00,000/- each.
Interest paid to coventurer A & B-50000/- each.

 

taxable income of A (excluding income from AOP) Rs.2,00,000/-
taxable income of A(Excluding income from AOP) Rs.0

 

calculate the tax payable by aop and member for A.Y. 2012-13.
waiting for your reply immediately.