A company joining with two other Companies in a Joint venture is treated under Income tax laws as __________.

Question

Quizplus · Accepted Answer

A joint venture involving multiple companies is typically treated as an "Association of Persons" (AOP) under income tax laws. This classification is used because the venture involves a group of persons (or entities) coming together for a common purpose or business activity, sharing profits and losses according to agreed terms, but not constituting a separate legal entity like a company.

A Company Joining with Two Other Companies in a Joint