Remuneration to partner

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

11 June 2013 sir,
can a partnership firm distribute remuneration and pay interest to its partner in case of loss.
partnershipp deed contains remuneration limit same as per it act but also says that in case of in sufficient profit remuneration and interest only to the extent of profit.
Thanks in advance

Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)
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11 June 2013 From the wordings of the partnership deed reproduced in the query, prima facie it seems that the firm is NOT ENTITLED to pay remuneration and interest in case of loss.

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