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PARTNER SALARY

Kumar Gaurav (Going...to be C.A soon...) (1624 Points)

11 October 2007

HI ALL,

CAN A PARTNER WITHDRAW HIS SALARY FROM FIRM BOOKS ON MONTHLY BASIS OR NOT?

THX

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7 Replies

SUBHASHINI (Student) (202 Points)
Replied 11 October 2007

hai Usually there should be an agreement to this... No partner has the right to a salary unless and otherwise there is an agreement.. Without an agreement he cannot withdraw..

Late CA Sampat Jain (Chartered Accountant) (4772 Points)
Replied 11 October 2007

What amount of salary a partner can withdraw is determned by partnershp deed . Income Tax Act , only prescrbes the maxmum allowable remuneration to partner . The right to withdraw salary is not controlled by Income Tax Act.

Prakash Popat (3134 Points)
Replied 13 October 2007

yes.

Joseph Alexander (CA Final Student) (163 Points)
Replied 15 October 2007

Partnership is an agency of mutual trust and understanding. Everything in partnership is purely based on the deed

Nirmal1986 (articles) (149 Points)
Replied 29 October 2007

what is the amount of maxmum salary allowable as remuneration to partner under the it act .

saran kumar (student) (145 Points)
Replied 31 October 2007

if ny partner want to withdraw his salary that shoulb be in deed..... if he withdraws his salary which is not specified in deed ... that amt shoulb be debited in to parnet capital account as "drawings".......