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Audit of a partnership firm
Can there be a partnership firm without partnership agreement?
Replies (8)
No. In that case there is no proof of constitution of business.
No, There must be an agreement and after that firm must be registered with registrar of firm.
No...
Without deed can't declare as Partnership Firm...
If Partnership then "Partnership Deed" is must. No more restriction for registration in registrar of Firm...
Without deed can't declare as Partnership Firm...
If Partnership then "Partnership Deed" is must. No more restriction for registration in registrar of Firm...
study material of audit IPCC group 2 in special audits chapter mentioned that there are partnerships without deed because as per indian contract act there is no compulsion that an agreement must be in writing.
Partnership is constituted by an agreement between the partners.
The agreement may be in writing or oral.
But from the practical point of view and particularly in view of the provisions of other Acts such as the Income Tax Act as well as Partnership Act an oral partnership is not practicable, and therefore, a partnership agreement is necessarily required to be in writing.
If there is no agreement between two partners then it will be treated as Body Of Individual.......
without partnership deed, the firm will be assessed as AOP and no deductions such as remuneration interest to partners will be allowed as deduction
partnership firm can be formed by oral aggrement as per The Indian Partnership Act,1932.
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