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partnership deed

RAJ KUMAR (FINANCE MANAGER) (1393 Points)

08 May 2010

hello friends, pls help me i have to make a partnership deed there are three partners they want to share 30% each and balance they want to retain in the name of GOD. Now pls tell me where i show this and whether itis legally ok or there is any problem.

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8 Replies

Devendra (Chartered Accountant) (4775 Points)
Replied 08 May 2010

There cannot be a share in the name of God. You can divide the share in three equal parts ie. 33.33% each. Any other query.

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Kalpesh Chauhan, (Tax Assistant (Accounting Technician CA FINAL CS PROF. PROG. B.Com)) (8311 Points)
Replied 08 May 2010

As per my knowledge you can only share equally i.e 33.33% share for each partner. Further if you want it for god than you can insert in deed a clause regarding a specific provision for donation.
And also such clause in Partnership Deed must not violate any of the provisions of the Partnership Act, 1932 as well as any other statute.

Amir (Learner) (4016 Points)
Replied 08 May 2010

Hi friendz,

I dont know the answer but surely interested to know........thats y taking part in it........

vikash rathi (Chartered Accountant) (787 Points)
Replied 08 May 2010

its legally ok..they can do it...just have to show ...10% amount of profit as charity.....i.e donation...no problem at all as this profit will be after tax...u can do anything with ur money.....practically i know ..the people who have done this....

vikash rathi (Chartered Accountant) (787 Points)
Replied 08 May 2010

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Nitin Grover (CS) (1228 Points)
Replied 08 May 2010

Dear Friends

Totally agree with Vikas

u can pay it to Charity its legally allowed so pay 10% to them

Regards

rohini kumar (TAX CONSULTANT & ADVOCATE) (48 Points)
Replied 10 May 2010

You being a Finance Manager it really looks darn to reply to your query,only existing and living can become partners,vide rules to become partners.I suggest you to create a trust give 10% to it so as to be spent for the purposes of god.

(Guest)

Eligibility For Partnership

A partnership agreement can be entered into between persons who are competent to contract. Every person who is of the age of majority according to the law to which he is subject and who is of sound mind and is not disqualified from contracting by any law to which he is subject can enter into a partnership.

The following can enter into a partnership

Individual :
An individual, who is competent to contract, can become a partner in the partnership firm. If there are more than two partners in a firm, an individual can be a partner in his individual capacity as well as in a representative capacity as Karta of the Hindu undivided family.
Firm :
A partnership firm is not a person and therefore a firm can not enter into partnership with any firm or individual. But a partner of the partnership firm can enter into partnership with other persons and he can share the profits of the said firm with his other co-partners of the parent firm.
Hindu Undivided Family :
A Karta of the Hindu undivided family can become a partner in a partnership in his individual capacity, provided the member has contributed his self acquired or personal skill and labour.
Company :
A company is a juristic person and therefore can become a partner in a partnership firm, if it is authorised to do so by its objects.
Trustees :
Trustees of private religious trust, family trust and trustees of Hindu mutts or other religious endowments are juristic persons and can therefore enter into partnership, unless their constitution or objects forbid.