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Partnership firm

Shah Yash (surat) (80 Points)

17 August 2014

Me and my friend is in articleship and we are forming partnership firm for doing business related to ca like incometax filing, tds filing, audit (signed by other ca) We have make deed but not registered it anywhere and not make affidavit, only we both have signed it One of clause is that "on breach of any conditiin penalty will be 5000 rs or net receipt of client he bring into business, Whichever is higher" Can this condition work when we have neither registerd nor affidavited And my another Question is that as partnership attracts 30% tax and as we have not registered it can we claim our income indivudually and make partnership deed just as safety and for use of knowledge of partner And 3rd Q is that can we open bank account on name of partnership firm And it is advisable to open bank a/c. As we want to show our income personally

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3 Replies

Tribhuvan Aditya Singh (Student as well as Self-employed) (3710 Points)
Replied 17 August 2014

unless the deed is registered it cant be legally enforced, so any prov. in your deed is just good as long as both partners follow it. if there is any dispute then none of partners can take legal action against another.... i will suggest that work under partnership but declare your income individually for sake of simplicity.... bank a/c cant be opened without a registered deed and valid pan of firm, however if any bank agrees to open without this then go ahead and open an account.

Shah Yash (surat) (80 Points)
Replied 18 August 2014

Sir as per you we can done work under partnership with mutual consent And as we have not registered it we can show our income individually so that we can make tax planning too Am I right sir ?