Partnership deed
This query is : Resolved
21 January 2016
Dear experts. please spare your valuable time in giving the advice.
The assessee is a partnership firm having two partners . one of the partner has died in june 2015 and firm has continued its business till now . now stampaper or any other deed was drafted after the death of partner.
Now question is
1) can we draft the partnership deed on current date stamp papers with one old and one new ( legal heir) partner and continue the same firm.
2) can this new deed will be from retrospective effect i.e from date of death of first partner.
3) date of execution will be from date of purchase of new stamper but will be effective retrospective from date of death of first partner.
Thanks in advance.
The assessee is a partnership firm having two partners . one of the partner has died in june 2015 and firm has continued its business till now . now stampaper or any other deed was drafted after the death of partner.
Now question is
1) can we draft the partnership deed on current date stamp papers with one old and one new ( legal heir) partner and continue the same firm.
2) can this new deed will be from retrospective effect i.e from date of death of first partner.
3) date of execution will be from date of purchase of new stamper but will be effective retrospective from date of death of first partner.
Thanks in advance.
23 January 2016
See the terms of original deed between the surviving partner and deceased partner. If it contains, on death of partner the firm dissolves automatically you follow the procedure accordingly. After that, write a new deed between legal heirs of the deceased partner and surviving partner now, by mentioning in the recitals of the deed that after death of partner, business has been continued in the same name, assets, liabilities, etc. by a oral agreement between the legal heirs and surviving partner and now they wish to reduce it into writing.
In such case you need write a new deed, apply new PAN card, pay capital gains tax for transfer of assets if any etc.
If no such of dissolution terms exist in the deed, then continue with the legal heirs, write a deed now by mentioning the same in the recitals of the deed that they are carrying and continuing the business by oral agreement. Same PAN card will do, no capital gains tax is applicable.
In such case you need write a new deed, apply new PAN card, pay capital gains tax for transfer of assets if any etc.
If no such of dissolution terms exist in the deed, then continue with the legal heirs, write a deed now by mentioning the same in the recitals of the deed that they are carrying and continuing the business by oral agreement. Same PAN card will do, no capital gains tax is applicable.
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28 January 2016
Thanks Ram pawan kumar melam ji
in the original deed it is written as
"in the event of death of any partner the firm shall not be dissolved but shall be carried on by the remaining partners with heir of deceased, if heirs so desire on such term and condition as shall agreeed upon by them mutually."
so i thing second option suits our case.
if possible can u please give me the format for the same.
thanks again for your advice.
in the original deed it is written as
"in the event of death of any partner the firm shall not be dissolved but shall be carried on by the remaining partners with heir of deceased, if heirs so desire on such term and condition as shall agreeed upon by them mutually."
so i thing second option suits our case.
if possible can u please give me the format for the same.
thanks again for your advice.
28 January 2016
In the recitals paragraph of the new deed, you mention about the brief history of the circumstances which lead inclusion of new partners. Recitals paragraph starts with "Whereas.....". If you need any assistance, please prepare a draft on your own and send me for verification.
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01 February 2016
sir please verify the same
"Whereas the party of first part was carrying on of business in partnership with Lt Sh Om Prakash Kapoor in term of partnership deed dated 02.11.2012 . under the name and style of M/S xyz CONSULTANCY SERVICE at Head office at, Pitampura, New Delhi-110034. who has expired on 15.07.2015.
And Whereas after his death the first party has decided to continue the said business by taking legal heir Meenu Mahendroo W/o deceased as partner to which she has consented and the partnership was carried on orally between party of first part and legal heir of Sh Om Prakash Kapoor. i.e between Riya Mehra and Meenu Mahendroo
Whereas the above parties desire that the terms and conditions governing the said partnership be reduced into writing.
thanks in advance
"Whereas the party of first part was carrying on of business in partnership with Lt Sh Om Prakash Kapoor in term of partnership deed dated 02.11.2012 . under the name and style of M/S xyz CONSULTANCY SERVICE at Head office at, Pitampura, New Delhi-110034. who has expired on 15.07.2015.
And Whereas after his death the first party has decided to continue the said business by taking legal heir Meenu Mahendroo W/o deceased as partner to which she has consented and the partnership was carried on orally between party of first part and legal heir of Sh Om Prakash Kapoor. i.e between Riya Mehra and Meenu Mahendroo
Whereas the above parties desire that the terms and conditions governing the said partnership be reduced into writing.
thanks in advance
01 February 2016
Perfectly alright, you may make a few modifications regarding refinement of the language. Otherwise also perfectly ok.
In the second recital, instead of writing one party's decision, you may write mutual decision, or some other words with the same meaning.
In the second recital, instead of writing one party's decision, you may write mutual decision, or some other words with the same meaning.
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