Regarding partneship deed

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Querist : Anonymous

Querist : Anonymous (Querist)

15 March 2013 Dear Experts,

1. Can we have oral partnership deed for income tax purpose ?

2. Is it compulsory to pay interest & Remuneration to partner if mentioned in Deed ?

As we are having totally exempt income so if we dont pay then is there any impact ?

Thanking you in advance.

Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)
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15 March 2013 i) No.
ii) Not compulsory.

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Querist : Anonymous

Querist : Anonymous (Querist)

15 March 2013 Thanks for reply sir but ITO have demanded on that basis.

Is there any judgement so that i can go ahead, one of our client is 100% EOU having profit but not paid Interest & Remuneration to Partner.

If having any link then send the same.

Thanks sir.

Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)
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16 March 2013 Production of certified copy of partnership deed is mandatory for claiming assessment in the status of a FIRM. In its absence ,the case will fail in view of Kerala high court decision in Bhaskar & Co Vs. CIT reported in 187 Taxman.

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Querist : Anonymous

Querist : Anonymous (Querist)

16 March 2013 Sir i was searching for a case where we are having clause in deed that we have to pay interest & remuneration but still we dont pay the same & it will be valid.

As in our case Firm income is excempt so we need not to pay interest & remuneration to partners.

So if there is any case relating to that then please give citation.

Thanks in advance sir.

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