14 June 2010
for interest The capital of the Partnership Firm shall be contributed by the parties as mutually agreed upon from time to time. The partners hereto shall also be entitled to borrow moneys on loan with or without security and upon such rate of interest, terms and conditions as the partners may mutually agree upon between them. The firm alongwith all the partners are equally responsible and liable for any money borrowed in the name of firm for the purpose of carrying on the business. Interest on Capital/current a/c shall be paid /credited to the account of partners @ 12% p.a. The partners shall pay interest in the case of excess withdrawals from the firm.
14 June 2010
for remuneration 8. REMUNERATION TO PARTNERS: (a) It is agreed by and between the parties hereto that 1. Mr. A; 2. Mr. B and 3. Mr. C (hereinafter referred to as the Working Partners) shall be the working partners in the partnership business and it is they who will take active interest and devote their time, attention and energy to the affairs of the business of the partnership. It is hereby agreed that in consideration of the working partners agreeing to devote their time, attention and energy to the business of the partnership firm, they shall be entitled to the yearly remuneration as hereinafter mentioned. (b) The total remuneration payable to the working partners shall be worked out as under: (i) On the first Rs. 300,000 of the book – profit or in case of a loss Rs. 1,50,000 or at the rate of 90 per cent of the book-profit, whichever is more; (ii) On the balance of the book profit: @ 60% of the book profit.
(c) For the purpose of clause (b) above, the expression “book profit” shall mean the “Book Profit” as defined in section 40(b) of the Income Tax Act, 1961 or any statutory modification or re-enactment thereof, for the time being in force. (d) Remuneration shall be paid to the three partners in the ratio of 2:1:1 worked out as per Section 40 (b) of Income Tax Act, 1961 to Mr. A, Mr. B & Mr. C respectively.
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