Whether The Royalty Paid to Partner is Considered as Expenses?

The partnership firm is incorporated with 2 partners.

partner 1- Pvt Ltd Company

partner 2- Individual

Contribution 

1- 100000

2- 300000

Salary 

1 - 10000 / month to Managing Partner (Managing Director of Pvt Ltd Company).

2 - Nil

Profit sharing

1- 50 %

2- 50%

Here The Business Idea for Partnership Firm is Given by Pvt Ltd Company. So The Partnership Firm will Give Royalty of 3% of Net Sales to Pvt Ltd Company.