Partner required for 10 yr old firm on fix basis

Hey Vikas! If you’re looking for a partner for your 10-year-old CA firm and want to offer fixed remuneration to a sleeping partner, here are a few things to keep in mind:

Key points for a sleeping partner with fixed remuneration:

• Sleeping Partner:
  Not involved in day-to-day operations, but shares in profits/losses as agreed.

• Fixed Remuneration:
  You can pay a fixed salary or remuneration as per your partnership deed.

• Profit Sharing:
  Decide if the sleeping partner will share profits in addition to fixed remuneration or only get fixed remuneration.

• Partnership Deed:
  Clearly specify the terms—remuneration, role, profit share, and duration.

• Tax Implications:
  Fixed remuneration paid to partners is generally allowed as a deduction for the firm, but ensure compliance with the Income Tax Act provisions related to partner remuneration.