Remuneration to Partners


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Querist : Anonymous

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Querist : Anonymous (Querist)
08 July 2010 Is it compulsary for all partnership firms to
pay remuneration as per section 40(b)to its partners even if there is no business in the particular financial year?

08 July 2010 No It is not necessary to pay remuneration to all the partners. But if Partnership deed provides so, it has to be paid.

08 July 2010 And if there is no sales in business during the year then there will be no business income and hence no remuneration can be paid anyhow.

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Querist : Anonymous

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Querist : Anonymous (Querist)
09 July 2010 If partnership deed provide so and there is no business in current year then also as per section 40(b) Rs. 150000 remuneration is compulsory to be paid?

09 July 2010
It depends upon the provisions contained in the deed. If deed provides "must be" then it must otherwise as per the discretion of the partners.

09 July 2010 However some business income must be there in my view.

09 July 2010 ya subject to business income


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