MANAGEMENT

Detailed explanation-1: -Tax rate: 30% (Basic rate) plus surcharge and cess. Alternate Minimum Tax (AMT) under section 115JC is applicable in certain circumstances. Partner’s share of profit is not taxable in India. Interest and remuneration-taxable for partner-if allowed, in other case it is not taxable.

Detailed explanation-2: -A joint venture is subject to corporate income tax on prescribed slabs for taxation calculated on the basis of its income. The joint venture parties themselves will be subject to income tax in the case of declaration of a dividend by the joint venture company in India.

Detailed explanation-3: -The JV company will be subject to tax on its own profits and so there will be leakage at the level of the JV company. It will then need to distribute any such amounts to its shareholders (generally either through a repayment of any debt financing, or through the payment of dividends).

Detailed explanation-4: -(a) Income of a Joint Venture project, may be assessed in the status of an ‘Association of persons’ under the Income-Tax Act. (b) The deductions under Section 80-IA or Section 80-IB, etc., will be available to such a Joint Venture assessable in the status of an AOP.