18 September 2013
Hi, I have an auditable transport partnership firm. In that firm there are two partners. In partnership deed, there is a provision of remuneration to partner as per income tax act. So I want to know that it is compulsory to provide remuneration to partner. As for finance purpose they need minimum profit 235000. So if we provide remuneration profit must be 539000 or above. Partners are willing not to take remuneration. Please help me what to do. ?
18 September 2013
Hi if it's a bank finance you can inform them that this salary is only for income tax purpose and the money will be introduced back into the business by way of crediting it to capital... In case they do not agree there should be a Cluse in partnership deed that the remuneration is payable as per specified clause or as mutually decided between the partners for this you will need to execute a supplementary deed for not providing the remuneration
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