Please Help: FINALISATION OF BS
Posted Date : 29-Nov-2013 , 12:42:00 pm | Posted By CA. KUMAR GAURAV
SIR WE ARE HAVING HEAD OFFICE AT FIROZABAD AND BRACH OFFICE AT AGRA MY QUESTION IS THAT HOW TO FINAL THE BS OF FIRM MEANS AGRA BRANCH AND HEAD OFFICE ARE PREPARING SEPRATE BOOKS OF ACCOUNTS AND SEPRATE BS AND IN OUR PARTNERSHIP DEEP PROFIT OF HEADOFFICE SHALL BE BORNE 100 BY ONE PARTNER AND THE PROFIT OF BRANCH OFFICE SHALL BE BORNE BY THREE PARTNERS IN AGREED RATION MY QUERY IS HOW THE REMUNERATION SHALL BE WORK OUT AS PER 40 B OF INCOME TAX ACT
MEANS SHALL WE WORK OUT THE REMUNERATION OF BRANCH AND HEAD OFFICE SEPRETALY AND LATTER ON MERGE THE FINAL BS AND TO WORK OUT THE PROFIT SHARE YA PHIR FIRSTLY COMBINED THE TOTAL BS THEN CALCULATE THE REMUNERATION AND PROFIT
MEANS SHALL WE WORK OUT THE REMUNERATION OF BRANCH AND HEAD OFFICE SEPRETALY AND LATTER ON MERGE THE FINAL BS AND TO WORK OUT THE PROFIT SHARE YA PHIR FIRSTLY COMBINED THE TOTAL BS THEN CALCULATE THE REMUNERATION AND PROFIT
Category : Accounts | Answers : 1 | Comments : 1 | Hits : 207
Answers
Answer By: shankygarg
AS PER THE SEC 40(B), LIMITS FOR THE REMUNERATION ARE BASED ON BOOK PROFITS & FOR ITS CALCULATION ,FOR INCOME TAX PURPOSE,BOOK PROFITS i.e. final profit WILL BE TAKEN. SO, BOTH PROFIT & REMUNERATION SHOULD BE CALCULATED ON COMBINED PROFIT.
Comments
SUBHASH KUMAR JHA
07-Dec-2013 , 11:06:08 amfirstly combine the total bs then calculate remuneration and profit.