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
- CAPITAL GAIN REDEVELOPED FLAT
- Requirement under FEMA &RBI
- CLOSING STOCK QUERY
- GST ISD Query on various AMCs
- Technical Glitch in ITR-4 Online Form (AY 2026-27): Sec 44AE Partner Remuneration not mapping to E8
- Residential status of non resident
- Short Term Gain Reporting ITR
- F&O reporting in ITR
- Itr processing refund
- Gst reverse charge mechanism to be claimed in the month of payment
- Concept of Vendor and customner reconciliation
- Mistake in e-invoice identified after 24 hours
- EXPORT PAYMENT
- NRI ITR2 account in 2025-26.
- Query regarding reporting of exempt foreign remuneration in ITR (AY 2026-27)
- FEMA/RBI treatment — Amazon.ca arbitrage (US buy, Canada sell, goods never enter India)
- Goods return by customer
- INWARD REMITTANCE FOREIGN
- CPC and SAC
- Account freezed for Ineligible ITC Scrutiny for GST Annual Return
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
