Partnership firm interest on capital

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Querist : Anonymous

Querist : Anonymous (Querist)

06 September 2012 if under partnership deed its mentioned to pay interest on capital @ 12% than its mandatory to pay??

CA AYUSH AGRAWAL

CA AYUSH AGRAWAL (Expert)
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06 September 2012 Under Partnership Act 1932, A Partner if Disagree Then Can Lodge Complain Against Other if They Were Against.

But Under Income Tax Act, No Such Issue if You Dont Pay.

Issue Arise Only When Some Partner Disagree With This.

Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)
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07 September 2012 If the clause in the deed is unconditional, payment / provision is mandatory otherwise a plea can be raised that accounts are prepared not in accordance with the partnership deed.

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CA Lokesh Pokharna

CA Lokesh Pokharna (Expert)
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07 September 2012 yes if payment not been made then at least provision should be made because its a apparent liability for firm(bcoz partners can claim)..

CA AYUSH AGRAWAL

CA AYUSH AGRAWAL (Expert)
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07 September 2012 If All Partners Are Agree, I Mean Decision Taken After All Consent, Then No Issue.
& After That For Future Compliance, Just Make Modification in Deed, & Put a Condition That Interest Payable Only After Consent of Partners.