Remuneration to llp partners?

Yes TD,

You heard correct. Deed should show a quantified amount of Remuneration. You people have to sign a rectification deed showing a fixed amount of salary.

Hello Santosh,

Thanks for the response.

 Does this statement look fine:

"It is agreed by and in between the Partners that both the working partners together will be entitled to remuneration of 90% of the LLP's annual profit which will be divided between them equally after calculating the book profit".

Originally posted by : Santosh Kumar Eligeti
	Yes TD, You heard correct. Deed should show a quantified amount of Remuneration. You people have to sign a rectification deed showing a fixed amount of salary.

No sir... You should show a quantified remuneration.

Originally posted by : Santosh Kumar Eligeti
	No sir... You should show a quantified remuneration.

Thanks for the response Santosh. Let's say I make a profit of 10 lacs in a year and I have written in the agreement that I will withdraw Rs50,000 every month. That will work as it is quantified. 

But what happens if my next year profit is 20 lacs and I now want to withdraw more as my profits have increased? If we quantify to a fixed rupees amount, then I will have to change the agreement every year. Using a percentage makes more sense to me. What's your opinion?

Thanks!

As earlier said you can not show % salary, it should show a number.

You do one thing show more than what you draw in the first deed only. The value you show is maximum permissible value of salary you can withdraw less than that also.

And in income tax axt there is special calculation for the allowable salary.

So show what you wanna draw when there will be more profits in the first years only...