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Partnership Firm · Indian Partnership Act 1932 · Tax & GST

Partnership Compliance tax, GST, and deed compliance on one calendar.

End-to-end compliance services for partnership firms registered under the Indian Partnership Act, 1932 — income tax, GST, TDS, partner remuneration, capital and current accounts, deed amendments, registration changes, and ongoing statutory compliance.

A partnership firm in India is governed by the Indian Partnership Act, 1932 and is the oldest, simplest, and most flexible business structure for two or more persons carrying on business together for shared profit. While the Partnership Act itself imposes minimal statutory compliance, every partnership firm carrying on business in India falls under several other regimes — the Income Tax Act for return filing, tax audit, and partner remuneration; the Goods and Services Tax law for GST registration, monthly and annual returns, and e-invoice compliance; the Tax Deducted at Source provisions for payments to vendors, contractors, and professionals; the Shops and Establishments Act of the relevant state; labour laws including provident fund, employee state insurance, and professional tax; and FEMA if any partner is a non-resident or there is any cross-border transaction.

Beyond statutory filings, a properly run partnership firm needs disciplined internal compliance — clear and up-to-date partnership deed, properly maintained capital and current accounts for each partner, computed and recorded interest on capital and partner remuneration within Section 40(b) limits, periodic reconstitution deeds where partners are admitted or retired, and timely intimation of changes to the Registrar of Firms where the firm is registered. Lapses in these create disputes during partner exits, succession, and bank or vendor diligence.

Our partnership compliance practice acts as the long-term advisor for partnership firms of every kind — professional firms, family businesses, trading firms, manufacturing units, and consultancies. We handle deed drafting and amendments, registration with the Registrar of Firms, ongoing income tax and GST filings, tax audit, computation of partner remuneration and interest, reconstitution on partner admission or retirement, conversion to LLP or private limited company where required, and dissolution support. The objective is a partnership that is tax-efficient, dispute-free, and compliant year after year.

Our Partnership Compliance Services

01

Deed Drafting & Amendment

Drafting and amendment of partnership deeds for new firms, partner changes, and capital changes.

02

Registration of Firm

Registration of the partnership firm with the Registrar of Firms of the relevant state.

03

PAN, TAN & GST

Application for firm PAN, TAN, and GST registration with the relevant authorities.

04

Income Tax Return

Income tax return filing of the partnership firm and partners with computation of remuneration.

05

Tax Audit

Tax audit under Section 44AB and presumptive taxation advisory under Sections 44AD and 44ADA.

06

GST & TDS Compliance

Monthly GSTR-1, GSTR-3B, GSTR-9, TDS payments, and quarterly TDS returns.

07

Partner Reconstitution

Reconstitution deed on admission, retirement, or death of a partner with capital reconciliation.

08

Conversion to LLP

Conversion of partnership firm to LLP or private limited company with tax neutrality advisory.

Our Compliance Workflow

1

Onboarding

Review of partnership deed, registration status, and current compliance position.

2

Calendar Build

Build of a monthly, quarterly, and annual compliance calendar for the firm.

3

Data & Bookkeeping

Data flow from accounts to the compliance team for each scheduled filing.

4

Filings

Filing of GST, TDS, income tax, and tax audit returns within statutory windows.

5

Partner Reporting

Periodic reporting to partners on compliance, tax position, and capital accounts.

Benefits of a Managed Partnership Compliance

Zero missed tax, GST, and TDS deadlines
Optimal use of Section 40(b) remuneration limit
Clean partner capital and current accounts
Avoidance of late fees, interest, and penalty
Dispute-free partner admission and exit
Diligence-ready records for banks and vendors
Smooth conversion to LLP or company
Audit-ready records year-round

Frequently Asked Questions

Registration is not mandatory under the Indian Partnership Act, 1932 but an unregistered firm cannot sue third parties to enforce contractual rights.

Yes. Tax audit under Section 44AB is required if turnover exceeds Rs 1 crore for business or Rs 50 lakh for profession, subject to presumptive thresholds.

A partnership firm is taxed at a flat 30% plus applicable surcharge and cess on its taxable income under the Income Tax Act.

Yes. Remuneration paid to working partners is deductible up to the limit prescribed under Section 40(b) of the Income Tax Act.

No. A traditional partnership firm is not required to file annual returns with the Registrar of Companies as it is not governed by the Companies Act.

Need a Partnership Compliance Partner?

Whether you are forming a new partnership, adding or exiting a partner, or simplifying your tax and GST compliance, talk to our team for a managed partnership compliance programme.

Talk to Our Team or call +91 9819 000 511