Can firm pay commission based on net profit to non partner ?
This query is : Resolved
23 May 2016
Hello everyone,
M/S AB is a firm. Mr Z has good contacts and he can get business to the firm. But he don't want commission on transaction wise he want a specified % of net profit without being a partner.
Firm is planning to enter into MOU for the Same.
Is firm steps correct ????
M/S AB is a firm. Mr Z has good contacts and he can get business to the firm. But he don't want commission on transaction wise he want a specified % of net profit without being a partner.
Firm is planning to enter into MOU for the Same.
Is firm steps correct ????
23 May 2016
Sharing of profit to other than a partner of the firm under the nomenclature '% of net profit' is against Indian Partnership Act,1932.
23 May 2016
sharing the figure of profit with a non member/partner is not a prudent policy.
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- Showing Gift from relative in ITR for this year
- Share accounting-->fifo - capital gain - period as per fifo?
- ITR selection for salaries and capital gain less than L
- ITR filing- non tax audit cases- Asstt.Year 2026-2027
- Soyabean hsn code and gst rate
- Treatment of Pension ?annuity returns on PMVY
- Last year TDS Claim
- Scrutiny assessments u/s 143(2) for AY 25-26
- Regarding IMS Mandatory from 1st July 2026
- Form 10E u/s 89(1). Need clarification because experts opinions differ !!!!
- One Post a Week Done Right Beats Seven Done Wrong
- INCOME TAX ON REDEVELOPEMENT OF FLAT
- LTCG on switch of units
- ITR 2 Short Term gain & Long term gain
- Gst invoice numbering and delivery challan numbering
- Standard Deduction claim for EPFO Pension and ICICI Prudential Life Annuity
- Small dealers gst returns filing
- Sales amount in Gstr1
- CG after sale of flat
- E Commerce GSTR1 & 3B how to file
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
