Partnership deed and remuneration to parnters

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

06 November 2015 KIND ATTN. SIR.

IN THE INSTANT CASE , BOTH HUSBAND AND WIFE ARE PARNTERS .BOTH ARE WORKING PARTNERS.

WHTHER REMUNERATION TO PARTNERS CAN BE PROVIDED TO BOTH THE PARTNERS (HUSBAND AND WIFE ).IF PROVIDED WHETHER CLUBBING PROVISION WILL ATTRACT OR NOT. KINDLY CLARIFY.

WITH REGARDS
CA.P.SHANGAR

CS Advocate Abhishek Goyal

CS Advocate Abhishek Goyal (Expert)
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06 November 2015 As per section 64, in such circumstances clubbing provisions will apply if either of the husband or wife is having 20% or more share in profits of the firm. Further the other spouse is admitted as a partner without any technical or professional qualification to justify as a partner.