Salary to designated partner in LLP

This query is : Resolved

PVS Sastry (Querist)
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28 September 2019 Hi Professionals,
Please Clarify whether salary can be paid to a partner who invested 20% share in Limited Liability Partnership in addition to Remuneration. Means Both Salary and Remuneration to same person by treating him/her as an employee.
Give me suggestions with suitable case laws if any.

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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28 September 2019 Only remuneration to partners can be paid subject to limits as per LLP deed and as per the provisions of the Income tax Act.

PVS Sastry

PVS Sastry (Querist)
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28 September 2019 continutation to the previous query, if no remuneration is paid to designated partner whether salary can be paid to him/her as an employee in LLP.

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CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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28 September 2019 Yes, it will be considered as remuneration to partners and limits applicable.