Regarding partneship deed

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Querist : Anonymous

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Querist : Anonymous (Querist)
15 March 2013 Dear Experts,

1. Can we have oral partnership deed for income tax purpose ?

2. Is it compulsory to pay interest & Remuneration to partner if mentioned in Deed ?

As we are having totally exempt income so if we dont pay then is there any impact ?

Thanking you in advance.

15 March 2013 i) No.
ii) Not compulsory.

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Querist : Anonymous

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Querist : Anonymous (Querist)
15 March 2013 Thanks for reply sir but ITO have demanded on that basis.

Is there any judgement so that i can go ahead, one of our client is 100% EOU having profit but not paid Interest & Remuneration to Partner.

If having any link then send the same.

Thanks sir.

16 March 2013 Production of certified copy of partnership deed is mandatory for claiming assessment in the status of a FIRM. In its absence ,the case will fail in view of Kerala high court decision in Bhaskar & Co Vs. CIT reported in 187 Taxman.

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Querist : Anonymous

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Querist : Anonymous (Querist)
16 March 2013 Sir i was searching for a case where we are having clause in deed that we have to pay interest & remuneration but still we dont pay the same & it will be valid.

As in our case Firm income is excempt so we need not to pay interest & remuneration to partners.

So if there is any case relating to that then please give citation.

Thanks in advance sir.


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