I am looking forward to adding a new partner into the LLP. However, this is based on a certain condition. The said 'to be' partner has proposed to bring in referred business to account for his contribution. As an assumption if he brings in a business deal of Rs.100,000/-, he wants Rs.20,000/- of that to be counted as his contribution to become a partner. Also the assumption is 1 deal only. Basically he wants his referral fee to count as contribution.
What I am looking for advice on is: How will this be structured in the books? Should the 20K be paid out as referral fee with TDS and then ask him to invest it back as a partner or is there a way that part of this revenue can be moved to owners contribution head to bring the partner onboard?
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