Patnership Act
This query is : Resolved
14 October 2008
(a) - i think only managing partner is eligible for remuneration in partnership firm for salary as per IT act. what r the consequences if other partners also draw remuneration - is it is not given any deduction as an expense in P&L a/c, if so then is it tax free in the hands of partners.
Can partnership deed authorise salary payment to partners who are not managing partners.
(b) can a firm have multiple managing partners.
Can partnership deed authorise salary payment to partners who are not managing partners.
(b) can a firm have multiple managing partners.
14 October 2008
In the Income Tax Act the mention is that of Working partners. so all partners if treated as working partners can take salary.
14 October 2008
Continuing on the subject,if the partner is not a working partner and he is drawing salary the said expenditure will not be allowed as a business expenditure of the partnership firm.
14 October 2008
If the expenditure is not allowed as expense is that exempt in the hands of partners. If not exempt then i think it shall amount to double taxation of same income.
also kindly answer the Q. b
also kindly answer the Q. b
15 October 2008
- If the remuneration / salary from the firm is not allowed as an expenditure in the hands of the firm, the same will not be treated as income of the partner
- Firm can have multiple managing partners.
- Firm can have multiple managing partners.
15 October 2008
Thank u all guys for all the responses.
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