Profit sharing system
This query is : Resolved
Querist : Anonymous
Querist :
Anonymous
(Querist)
24 December 2013
Hi,
I'm Working as a Financial Analyst in a 6 years old partnership firm. There are 7 partners who was shared their profit for last 5 years in the proposed ratio which they agreed . It's an architectural firm. Every partners are involving in project works. Here 2 or 3 partners earning much than the others.So for the past 5 years those earning partners are contributing more money for the office development than others. Now they felt that the partners who are contributing less money for office development are also enjoying the whole benefits. They reported me about this issue and asked me for some plans to change sharing system. Please give me a suggession for this issue. Is it possible to share profits against the ratio which is agreed in deed?
I'm Working as a Financial Analyst in a 6 years old partnership firm. There are 7 partners who was shared their profit for last 5 years in the proposed ratio which they agreed . It's an architectural firm. Every partners are involving in project works. Here 2 or 3 partners earning much than the others.So for the past 5 years those earning partners are contributing more money for the office development than others. Now they felt that the partners who are contributing less money for office development are also enjoying the whole benefits. They reported me about this issue and asked me for some plans to change sharing system. Please give me a suggession for this issue. Is it possible to share profits against the ratio which is agreed in deed?
24 December 2013
You can amend the partnership deed with a revised profit sharing ratio. The other alternative is to structure the remuneration of the partners so as to compensate the more working partner.
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
- About TDS & Income Tax
- Section 194JA & JB Income which ITR Form to use
- Pass word to open justification report for Q1 for FY 2026-27
- PPF interest-As Exempt Income disclosure
- Under construction property in ITR
- Scrutiny and reopening of past returns
- Booth for sales promotion
- Upload Level ValidationITR3Category of Defect B/D
- Building tax payment deduction in rental Income
- F & O PROFIT REPORTING FOR AY 2026-27
- Difference in GSTR3B system generated which is correct and actual Payment it asks
- Indian IT Portal issue in computing tax as per UK-India DTAA
- Capital Gains on sale of residential flat
- PF Taxable Income
- Clarification on Tax Audit Applicability and Reporting of F&O Transactions in ITR-3
- Interest credited in FY2025-2026 & TDS therein by EPFO does not reflect in AIS or Form 26AS
- 44ad eligble money lending interest
- Taxation in the hands of Landowner under JDA
- Delisted shares sold in off market/ Rebate u/s87A
- In Exports Sales HSN details where to fill
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
