Reconstruction of Firm
This query is : Resolved
Hersh Jani
(Querist)
11 December 2009
Dear Sir,
I have a client who is in the business of construction. He works through a partnership company. He makes residential schemes. Now for each scheme he has different partners and different profit sharing ratios.So he makes new partnership for every scheme and on completion of the scheme dissolves the firm. By this he needs to maintain seperate accounts for each firm and file a return seperately. For the sake of administrative convinience he want to make the constitution of the firm in such a way that all the accounts are clubed together and he can file on one income tax return.
Kindly advise me for the same.
I have a client who is in the business of construction. He works through a partnership company. He makes residential schemes. Now for each scheme he has different partners and different profit sharing ratios.So he makes new partnership for every scheme and on completion of the scheme dissolves the firm. By this he needs to maintain seperate accounts for each firm and file a return seperately. For the sake of administrative convinience he want to make the constitution of the firm in such a way that all the accounts are clubed together and he can file on one income tax return.
Kindly advise me for the same.
Balakrishnan
(Expert)
11 December 2009
I afraid it can not be done in IT. For IT each Firm is seperate and identified with respective Partnership Deeds and specific profit/loss sharing ratios. Hence only seperate return should be filed for each firm. It is better to advice him to start a Private Limited Co., and enter into agreement for each scheme and pay off the third parties (partners)
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