LIVE GST Certification Course by CA Arun Chhajer begins 21st April. Register Now!!

New partnership deed

HARENDRA KUMAR (ACCOUNTANT) (89 Points)

24 January 2019

A Running Proprietorship Business want into formation of a new Registered Partnership Business. My question is How can cantribution of capital in new partnership deed by a Running Propriter worth capital which is near about Rs.15 lakh and new Partner brings only Rs.1 lakh capital contribution.But P/L ratio equal both Partner agree for those. How can showing in Partnership Deed? please Guide .

Thanks,

Harendra Kumar

Reply
Follow
Share

8 Replies

Ruchika Somani (Coaching and Practice in Tax Audit Law.) (4429 Points)
Replied 24 January 2019

Do you have a format of partnership deed?

HARENDRA KUMAR (ACCOUNTANT) (89 Points)
Replied 24 January 2019

yes.have a formate

Ruchika Somani (Coaching and Practice in Tax Audit Law.) (4429 Points)
Replied 24 January 2019

Yes so according to format make a deed and include income tax applicable clauses related to interest, remuneration, etc.

HARENDRA KUMAR (ACCOUNTANT) (89 Points)
Replied 24 January 2019

please tell me details of income tax applicable clauses.

Ruchika Somani (Coaching and Practice in Tax Audit Law.) (4429 Points)
Replied 24 January 2019

any payment of remuneration to any partner who is a working partner, which is authorised by, and is in accordance with, the terms of the partnership deed and relates to any period falling after the date of such partnership deed in so far as the amount of such payment to all the partners during the previous year exceeds the aggregate amount computed as hereunder :—

	(a)	on the first Rs. 3,00,000 of the book-profit or in case of a loss		Rs. 1,50,000 or at the rate of 90 per cent of the book-profit, whichever is more;
	(b)	on the balance of the book-profit		at the rate of 60 per cent :

Interest shall be payable @ 12% on average capital at the end of the year and remuneration may be or may not be payable that may be decided by partners in partnership deed.

1 Like

HARENDRA KUMAR (ACCOUNTANT) (89 Points)
Replied 24 January 2019

My question is How can contribution of capital in new partnership deed by a Running Proprietor worth capital which is near about Rs.15 lakh and new Partner brings only Rs.1 lakh capital contribution.But P/L ratio equal both Partner agree for those. How can showing in Partnership Deed?