| Question And Answer | |
|---|---|
| Subject: | ARRANGEMENT OF PARTNERS IN LLP |
| Category: | Income-Tax |
| Querist: | Manoj jain |
| Answered by: | 1882. Therefore, Advocate Shashi Ashok Bekal, as long as the objects are legal and there is a mutual understanding amongst the partners, such an arrangement is possible. AMT is on the basis of total computation of income of all consolidated projects and is not computed project wise., the Partnerships are fundamentally on the basis of Indian Contract Act, Yes |
| Tags: | Arrangement of partners, Limited liability partnership |
| Date: | December 27, 2022 |
Assessee is LLp having 8 partners, engaged in business of construction. Is having 4 diffrent housing project . One project which is eligible for deduction u/sec.80IBA of which profits are shared equally. Remaining 3 projects which are not eligible for deduction u/sec.80IBA , they have decided to share profit sharing ratio in diffrent ration as per their mutual understanding due to involvement of partners, capital contribution by the partners .
Issues :
1. Whether this arrangement is permissible under LLP act as well as Income Tax Act
2. Whether credit of AMT paid on project can be use against tax liability of other 3 projects.
Pl guide .
Yes, the Partnerships are fundamentally on the basis of Indian Contract Act, 1882. Therefore, as long as the objects are legal and there is a mutual understanding amongst the partners, such an arrangement is possible.
AMT is on the basis of total computation of income of all consolidated projects and is not computed project wise.