03 March 2010
One of my freind running frachies of line share trading in sharekhan. Every month he is getting brokrage around 50,000/-. He want to open another frachines in partnership firm with his friend. But share khan will not give franchies on partneship firm name, because one of the partner is alredy took frachies. But my freind and his friend already capital invested around 5,00,000/-equaly. My question if we took frachies in his freind name, hw do we make payment to my freind? what is the aggrement to create? hw to we pass enty in that.
You can show it as loan given and charge interest there on. Otherwise you can take franchise on other friend name and for income tax shows as partnership firm and give profit share and remuneration.
CAclubindia
