Indore : For rolling out new business, partnership can be a better option rather than opening under a private firm, as the rules for private firms are made more stringent in the New Company Act 2013, said, CA Manish Dafaria here on Monday while addressing a lecture jointly organised by Tax Practitioners Association and CA Indore Branch at Aaykar Bhawan.
CA Dafaria said that in New Company Act, rolling out a new private company has been made tougher. On violation of any clause, the provisions are made for strict punishment and penalty on the director and auditor both. However, in the partnership deed the provisions for the salary and interest of the partners should be clear and the way of calculation of it should be clear in the deed. If a firm paid interest to NRI partner, then the TDS liability raised. If the partnership firm is being incorporated for agricultural work, then the salary received by the partner from the firm will be considered as tax free income. On this occasion a large number of tax consultants and CAs were present. Earlier, CA Anil Khandelwal gave the presidential address.