I've started a small partnership firm in India.What legalities(eg:business licence/tax) do i have to complete?

Question

I have recently started a small partnership firm (2 business partners are the only employees) in Calcutta, India. I have got the trade licence made for my firm. I need to know what are the other legal procedures that have to be completed? What would be the procedure of tax registeration? Do I have to register my company name separately or is it already done as i have the trade licence? Is there anything else that needs to be done?Please help!

Many thanks!

Answer 1

A partnership is treated as a separate entity for tax purpose. A partnerhip with a proper partnership deed is taxed as a partnerhip, and if no partnership deed exists, it is taxed as AOP. Normally it is better to be taxed as partnership. Partnership can pay salary and allowances to the partners (which partners must report of their individual tax returns) and take deduction for it. The partnership profit after paying income tax is not taxable in the hands of partners. Read

http://mytaxes.in/index.php?topic=20.0