LLP & Section 40(b) of I.T.Act

CA Sanjay Baheti (PROPRIETOR) (1155 Points)

13 May 2010  

Query regarding Section 40(b) of Income Tax Act, 1961 Whether provisions of Section 40(b) applicable to partnership firms would also apply to LLP? If LLP agreement doesn’t have a specific clause with regard to designated partner’s remuneration whether a resolution is sufficient to allow remuneration under section 40b? Or the LLP Agreement itself has to be amended.? What are the detailed procedure to be followed in this regard?