Partnership

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Danish (Querist)
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14 April 2015 hi experts i want to know about formation of partnership firm what is the entire procedure documents required and what clause we should incorporate from taxation point of view like interest in capital, remuneration etc... it will be service providing firm what all registration will be required??

CS Advocate Abhishek Goyal

CS Advocate Abhishek Goyal (Expert)
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14 April 2015 The deed of partnership will be made on a stamp paper of appropriate value as per your state and the deed should be signed by all the partners in presence of witness and it should be registered with the registrar of firms of your state. After that you may apply for PAN card of partnership firm and open a bank account in the name of your firm. Regarding interest on capital maximum interest is 12% per annum as per income tax point of view and regarding remuneration please refer section 40(b) of the income tax act. It is advisable to draft clause on interest on capital and remuneration from the point of view of income tax only otherwise these deductions will not allow to your firm while filing its return.

Rupesh Jain

Rupesh Jain (Expert)
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14 April 2015 for partnership firm you have to use STAMP PAPER as per state stamp act.
and make and incorporate the necessary clause and above as mention by Mr abhishek.

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