Help Someone help with my Question
At present the profils of partneship firm is taxed at the rate of 30% which is further increased by the surchage of 10% and the eduction cess of 2% is payable on the income tax as well as surchage. the effective rate of tax works out to be 33.66%. While Calaulating theprofit of the partnershp firm, following amounts can be claimed by the firm as the allowable expenditure.
The firm can pay interest on captial to the partners on the amount of capital introduced by thrm in the business but the rate of interest on cannot exceed 12% per annum. This interest on capital can be paid by the firm to all the partners.
explain the same.
shweta Sharma.
Vadodara
