REGARDING CAPITAL CONTRIBUTION BY PARTNER
This query is : Resolved
Quick Summary
Suresh S. Tejwani
(Querist)
28 June 2025
If Mr. X Brings Immovable property as capital contribution in partnership firm then such property shall be booked by partnership firm at the book value in the hands of partner which is mutually agreed by all the partners then whether such clause is to be mandatorily mentioned in Partnership deed?
CA R SEETHARAMAN
(Expert)
30 June 2025
Yes.
The partnership deed should clearly outline how property contributions are treated.
It should specify whether the property becomes partnership property, or if there are any specific conditions attached to its contribution.
The deed should also address how the value of the contributed property is accounted for in terms of the partner's capital account and profit sharing.
The partnership deed should clearly outline how property contributions are treated.
It should specify whether the property becomes partnership property, or if there are any specific conditions attached to its contribution.
The deed should also address how the value of the contributed property is accounted for in terms of the partner's capital account and profit sharing.
Suresh S. Tejwani
(Querist)
30 June 2025
If partners have not mentioned the clause in partnership deed and they have decided to bring property at book value afterwards then whether there is any option other than supplementary deed ?
What are the consequences of not mentioning clause in partnership deed ?
What are the consequences of not mentioning clause in partnership deed ?
CA R SEETHARAMAN
(Expert)
30 June 2025
No option except supplementary deed.
Not mentioning in the deed, ownership of the property will not be transferred to the firm.
Not mentioning in the deed, ownership of the property will not be transferred to the firm.
Suresh S. Tejwani
(Querist)
30 June 2025
If in partnership deed All the property of partner shall be transferred is mentioned only value at which it shall be transferred is not mentioned then it is compulsory to mention in supplementary deed?
Even if it is mutually agreed between partners to transfer property at book value orally
Even if it is mutually agreed between partners to transfer property at book value orally
CA R SEETHARAMAN
(Expert)
30 June 2025
Yes, value should be mentioned in the supplementary deed.
Oral agreement leads to dispute at a later date.
Oral agreement leads to dispute at a later date.
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