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Service Tax Registration procedure

Devang Mirani (Assistant Manager) (55 Points)

21 March 2010

Dear Friends,

I have an one query regarding Partnership Deed.

One of our client have Partnership business, they were 2 partners but 3 years back one of partner was dead, then they have introduced one new partner in the firm within 1 week of partner death, but at that time they did not amend the Partnership deed & same not registered with Registrar Of Firm.

Now they have 2 stamp papers of Rs.100 each dated April 2007 & they want to modified the deed & same they want to Registred with ROF.

Kindly guide me in the matter what to do & I want the same type of partnership deed related to the same case.

Best Regards

Devang Mirani

9819839798

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1 Replies

Ram Avtar Singh (Nagari Sultanpur U.P.Delhi) (14487 Points)
Replied 21 March 2010

RETIREMENT OR DEATH:

In case of death or retirement of any one of the partners of the firm, the surviving partner will be entitled to continue the firm either by taking new partners or without inducting anybody. The retiring partner will get only the amount standing to the credit of his name. He will not have any claim over the assets and goodwill of the firm, and also will not be liable for any liability of the firm viz. loan from the bank /private party and legal proceeding pending in any court against the firm.

A partnership firm is not a legal entity. It has no perpetual existence as in case of a company incorporated under Companies Act. However, the Act gives the partnership limited rights of continuity of business despite change of partners. In absence of specific provision in partnership deed, death or insolvency of a partner means dissolution of the firm. However, partnership can provide that the firm will not dissolve in such case.