21 September 2012
sIf nothing is specifically mentioned in Partnership deed regarding remuneration and interest to Partners, can we give remuneration to working partners???
However, in Partnership deed it is mentioned that "profit or loss of partnership will be shared by partners after deducting all the expenses towards business namely Salary, electricity, interest, rent, depreciation and other business expenses."
21 September 2012
If the partnership deed not containing related to the remuneration and interest. it seems partners are not eligible to get remuneration and interest as per the terms and conditions of the partnership. So it's not allowed. Eventhough you paid it, it means overiding the partnership act and income tax not allowed as expenditure.
CAclubindia
