06 September 2016
The partnership deed states that remuneration shall be limited to maximum amount as provided by Income tax Act.However there is an additional clause that partners may modify all or any of the provisions relating to remuneration.My doubt is can the partners provide additional remuneration in P&L by way of a resolution passed among themselves?Will it lead to overriding of partnership deed thereby leading to incorrect books of accounts?
07 September 2016
Dear Retrospective amendment in partnership deed relating to remuneration, in such case the retrospective amount will not be allowed as deduction under income tax act. only prospective effects are allowed as deduction.
CAclubindia
