partnership firm

Form a partnership firm in Mumbai in just 7 working days-Please read the following points right till the end of the page.

 

TAXATION OF PARTNERSHIP FIRMS & LIMITED LIABILITY PARTNERSHIP (LLP)

Tax Audit u/s 44AB would be applicable if Total Sales, Turnover or Gross Receipts exceed Rs.2 cores from asst-18-19.

There is no requirement of audit for a Partnership Firm under Indian Partnership Act, 1932. However, under LLP Act, 2008, every LLP having turnover not less than Rs. 40 lakhs or Capital contribution not less than Rs. 25 Lakhs should get their accounts audited by a Chartered Accountant.

With effect from A.Y. 2006-07, it is mandatory for a firm to file return of income irrespective of whether there is taxable income or not. From A.Y. 2007-08, return of income for firms which are subject to Tax Audit u/s. 44AB need to compulsorily filed in electronic form with or without digitally signed.

Where a firm is succeeded by another firm (not being a change in constitution u/s. 187 as referred in (e) above) separate assessments shall be made on the predecessor and successor firms. (Sec. 188)

If business or profession carried on by the firm is discontinued or where a firm is dissolved, all the proceedings under the Act shall be made as if there is no discontinuance or dissolution.

If such discontinuance or dissolution takes place after any proceedings in respect of an assessment year have commenced, the proceedings may be continued against persons who were partners at the time of dissolution or discontinuation or legal representative of such person who is deceased.

(Sec. 189)

Maximum interest allowable on capital/current accounts of partners is 12% per annum. The payment of interest should be authorised by and in accordance with the instrument of partnership.

The remuneration is to be calculated on book profit of the firm; i.e. net profit as per profit and loss account (in the manner laid down in Chapter IV-D) of the firm before allowing deduction of remuneration to partners.

The book profit as per the provisions of section 40(b) is calculated as under-

Explanation 3 to section 40(b) defines “book-profit” as to mean the net profit, as shown in the profit and loss account for the relevant previous year, computed in the manner laid down in Chapter IV-D as increased by the aggregate amount of the remuneration paid or payable to all the partners of the firm if such amount has been deducted while computing the net profit.Step by step calculations .

Remuneration and interest will be allowed from the presumptive income computed at prescribed rates u/ss. 44AD, 44AE & 44AF.

Unabsorbed losses of the firm shall be carried forward and set off as per provisions of sections 70, 71, 71B, 72, 73, 74 and 74A in the hands of the firm.

In case of change in constitution of the firm, the loss proportionate to share of the retired or deceased partner shall not be allowed to be carried forward.

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 Steps to form a partnership firm-

Step-1- Make a partnership deed, wherein you have to mention the name of the proposed partnership firm,its address, names and addresses of the proposed partners and their profit sharing ratio. If the working partners are entitled to remuneration, then prescribe the amount of remuneration in the partnership deed in respect of the partner who is entitled to remuneration. The lmits of remuneration shall be as per the limits prescribed u/s 40 (b).Also, the interest @ 12 percent is to be paid to all partners-working and non working partners on the capital contributed by them. In the partnership deed, mention the basic objective,nature of business of partnership firm and distribution of assets in case of its dissolution or insolvency.

Step-2 Take printout of the partnership deed on a Rs 500/- stamp paper -in case if fixed capital is under Rs 50,000/-or else Rs 5000/- stamp paper in case if the fixed capital exceeds Rs 50,000/-. anad file the same 3 copies,each in english and marathi with Registrar of firms Bandra.The Registrar shaall put a stamp the partnership deed is duly filed and registered with the Registrar.

Step-3 Our charges- We shall do all the formalities for you. Our charges are Rs 15000/-(all inclusive of government fees,stamp paper, and ROF fees)  for opening a partnership firm and getting the same registered with Registrar of firms. We shall give you the acknowledgement of the partnership deed duly prepared in english and marathi, duly notarised (3 copies)and filed with the Registrar of firms Bandra.-Mumbai-India. You are required to deposit Rs 15000/- online into our bank account as under-

FILERETURN.COM PRIVATE LIMITED, ICICI BANK,TARDEO BRANCH,MUMBAI,INDIA,ACCOUNT NUMBER- 0 3 5 6 0 5 0 0 0 9 8 5.  Swift code-I C I C I N B C T S

After receiving the payment, our executive will call you and tell you the requirements via  email.We shall complete all the formalities for you rigt from bringing the stamp paper,till the creation of partnership firm, in just 7 working days. Please shoot an email along with your full name,mobile number, name and address of proposed partnership firm, names and address of partners, profit sharing ratio, nature of business, terms of remuneration and interest,etc at the following email address-

contact@filereturn.com

FILERETURN.COM PRIVATE LIMITED, In joint association with NIKUNJ AND ASSOCIATES-CHARTERED ACCOUNTANTS-C.A.Nikunj Shah-Chartered Accountant-LEGAL,TECHNICAL CONSULTANT FOR TAXATION,ACCOUNTANCY SERVICES. Contact-C.A.Nikunj Shah-mobile-9820442177,  tel-022-23878358

Please note-We are private people-not government people. This is a Private Limited Company under a joint,close supervision of the leading Chartered accountancy firm-M/S Nikunj and Associates-Chartered Accountants, headed by C.A.Nikunj N Shah.