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PARTNER SALARY

2347 views 7 replies

Kumar Gaurav

Going...to be C.A soon...

1624 Points Posted on 11 October 2007

HI ALL,

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

THX

Replies (7)

SUBHASHINI

Student

202 Points Posted on 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 Posted on 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 Posted on 13 October 2007

yes.

Joseph Alexander

CA Final Student

163 Points Posted on 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 Posted on 29 October 2007

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

saran kumar

student

145 Points Posted on 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".......