Partnership Deed

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CA Atul Jiwarajka (Querist)

27 June 2010 Drafting of Partnership Deed

Suppose a partnership is commenced on January 1, 2010.

The Deed of Partnership is executed on 15th January, 2010 on a stamp paper dated 10th January, 2010.

Q 1) When is the partnership considered to commence?

a.) Jan 1

b.) Jan 10

c.) Jan 15

Q 2) Suppose the deed specifies that the partnership comes into effect from Jan 1, 2010. Then will you answer to Q 1 be different?

mohinder kansal

mohinder kansal (Expert)

27 June 2010 partnership shall be treated as commenced w.e.f. 1st January if it is mentioned in partnership deed, otherwise from 15th January. although in query it is not mentioned how it is commenced on 1st January in case it is executed on 15th january.

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CA Shiv

CA Shiv (Expert)

27 June 2010 IF in deed it is written that " w.e.f 1st jan" than its from 1st jan only... Stamp paper can be of future date also as it is still valid......

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CA G. SURYANARAYANAN

CA G. SURYANARAYANAN (Expert)

27 June 2010 1. The Partnership Deed could specify a date which is not earlier than the date of the stamp paper.

2. But the Partnership may come into existence and commence on an earlier date.

3.The following clause shall be inserted in the deed:

"The Partnership shall be deemed to have commenced on 1st January."

The preamble may include the following recital:

WHEREAS the Partners hereinabove have started a business in partnership on and from 1st January, ...... on a oral agreement and now this partners wish that the terms and conditions of the Partnership shall be reduced in writing and hence this Deed."

Any Salary or Interest to a partner may be disallowed for the period of oral partnership.

CA G. SURYANARAYANAN

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