Ad Free CAclubindia and Daily Updates on your Mobile. Subscribe Now!

Partnership Deed

Naina (CA Student) (477 Points)

14 April 2009

How we can register a Partnership under Income Tax Act? What is the procedure? What costs writing a Partnership Deed? Please guide me.

Thanks

Reply
Follow
Share

11 Replies

Sorabh Gupta (Manager ( Taxation )) (877 Points)
Replied 15 April 2009

Naina

For registeration of firm under IT act, firstly take a STAMP PAPER & execute a deed of a partnership in that STAMP PAPER.

Then fill a form 11 & submit the same to IT deptt with a self attested original copy of partnership deed OR if original copy is not found then self attested duplicate copy of partnership deed .

Related to cost , its cost only to STAMP paper charges & Registeration charges to Govt Rs. 150 ..........

But there is no charges under income tax act only form 11 with instrument of deed.......

Hope now you are clear ...........

Upgrade to CAclubindia Pro. Subscribe Now!

Indudhar (Tax Advocate) (427 Points)
Replied 15 April 2009

I agree with Sorabh, but its Form No. 11A., regarding writing costs it depends upon the person who drafts it varying from Rs 200 to Rs 1000. you can draft yourself by referring model deeds.

Sorabh Gupta (Manager ( Taxation )) (877 Points)
Replied 15 April 2009

Indu

Form 11A is used when you registering your firm & there was a chage in constitution of firm in that relevant previous firm .

If i am wrong then please give yuor opinion..............

1 Like

Indudhar (Tax Advocate) (427 Points)
Replied 15 April 2009

yes sorabh you are right, its Form 11, but i heard that Form 11 and Form 11A were deleted long back by an IT Dept circular. And there is no compulsion of registration of firm at the IT office instead attach the Copy of the partnership deed alongwith ITR-5, while filing in the first year. but i dont have any citations regarding this right now.. i will post if i find the same.

Naina (CA Student) (477 Points)
Replied 15 April 2009

Thanks Mr. Sorabh and Ms Indu for your guidance. Do we have to attest the deed by Notary Public or is there any other legal formality left , after writing that on a stamp paper?

Upgrade to CAclubindia Pro. Subscribe Now!

Indudhar (Tax Advocate) (427 Points)
Replied 15 April 2009

Firstly according to the stamp Act you have to have to get Rs 1005 stamp receipt from the state bank and the partnership deed can be drafted on green/white paper. the same must be attested by a notarian. if you want to register then visit the District registrar of Firms and get the deed registered which has many previliges.

1 Like

Pratap Phatnani (Business) (93 Points)
Replied 24 June 2009

Plz i want format of LLP Partnership

Anumanchipalli Sathikonda (Tax Consultant) (1559 Points)
Replied 25 June 2009

Please note that Section 182 - Assessment of registered firm and section 183 Assessment of unregistered firm have been omitted form Income-tax Act, 1961 w.e.f 1-4-1993.

Now there is no concept of registered firm and unregistered firm. The form No.11; Fomr No.11A and Form No.12 are no more useful.

Now the relevant section for assessment of firms is section 184. As per the provisions of this section the return of a partnership is to be accompanied with the attested copy of partnership deed. If any changes in the constitution or other matters of the firm the copy of the amended partnership deed is to be accompanied with lthe return of the firm for the relevant assessment year.

Of late as there are amendments in rules in respect of filing of returns of income. No document is required to be filed along with the return of income.

The provisions of section 139C empowers the Assessing Officer to demand production of the documents.

Hope you have all got clarification regarding the assessment of a firm.

Best wishes

Sathikonda

Anumanchipalli Sathikonda (Tax Consultant) (1559 Points)
Replied 25 June 2009

In the Income-tax Act, under section 184 the attestation means attestation by the partners only. That means a copy of the partnership deed is to certified as a true copy by affixing the signatures of all the partners to the copy of the partnership deed. No need to be attested by a notory.

Sathikonda