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
Do you have a format of partnership deed?
yes.have a formate
Yes so according to format make a deed and include income tax applicable clauses related to interest, remuneration, etc.
please tell me details of income tax applicable clauses.
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.
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?
Its a normal thing that capital of both partners being different but PNL ratio being same so you can show it in normal way its shown in deed.
Thanks
CAclubindia
