Allowability of Rent : Taxation of Partnership

Company can pay rent to the Patrner. If company pay rent to the Partner then it can be allowabl business expense otherwise not.

The firm can pay rent to partners and it is very well allowable. But it should be at "arm's lenght price", i.e. at par with the market rate or with slight accepatble deviation. Say suppose, the market trend for similar kind of property on rent is Rs. 10,000.00 p.m. then, the rent that the firm pays cant be very huge like Rs. 25000 or so. 

Thanks a lot Mr. Kabra. Position is clear to me.