TaxTMI 
TaxTMI 
TaxTMI 
how to compute the tax liabiltity for land development business
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....ow to compute the tax liabiltity for land development business<br> Query (Issue) Started By: - Indudhar K Dated:- 12-12-2010 Last Reply Date:- 16-12-2010 Income Tax<br>Got 5 Replies<br>Income Tax<br>Myself and other friends totally 20 members,are interested in doing the business of land purchasing and selling (land developing) real estate nature. whether we should form a partnership firm or Pvt Lt....
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....d Company, which is best suitable for our business and how is the tax computed on our business.. Please guide me.. Reply By CA Rachit Agarwal: The Reply: If the business is on larger scale, company can be incorporated. Consult your consultant for the incorporation of the company. Reply By rishi mohan: The Reply: Sir, With the involvement of large number of members it is advisable to form a....
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.... private limited company, where 20 members can perform easily. Company shall be a single legal entity and same shall have a separate identity in the corporate field. You may go for the incorporation of a private limited company. Reply By CHITRA RAGURAM: The Reply: Income of both the companies and firms are taxed at same rate 30%. Formation of Partnership Firm is quiet easy with drafting a deed a....
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....nd the same may or may not be registered with Registrar of Firms. But for Company, it involves a lengthy process and also u need to pay a lump sum depending upon your authorised capital. But depending upon the strength i.e 20 numbers, it is advisable to form a corporate. Reply By pawan yadav: The Reply: Formation of partnership firm instead of private limited is an easy job while incorporation o....
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....f firm takes shorter period as compare to company , there is similar tax affect either incorporate company or forms partnership firm i.e. 30% tax rate Reply By DEV KUMAR KOTHARI: The Reply: many more factors are required to be considered like (a) how much capital will be introduced by each of member, (b) what will be forms of introduction of capital - cash and assets (land and other properties) a....
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....nd proportion of such capital introduced by various members, (c) the strength of friendship vis a vis commercial and financial aspects (d) the degree up to which friendship can be maintained and degree at which it may start cracking (e) joint business is to be managed by some of representatives, if all 20 put in their heads then business will , most likely not run, there will be no decision making....
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.... so - the group of working partners and there dependability and confidence level are to be considered<br> Discussion Forum - Knowledge Sharing ....