Rent divison

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harsh (Querist)
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23 November 2012 Hi all,
One of the partner of a partnership firm has a property which is used for the business by the firm. The question arises whether the other partners are LIABLE to pay the rent ??

CA Sreenivasa Rao Munaga

CA Sreenivasa Rao Munaga (Expert)
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23 November 2012 The liability to pay rent is for the firm and not for the partners or not for individual partners. As the firm is doing business from such place, the firm needs to pay rent.

CA Mihir Darji

CA Mihir Darji (Expert)
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23 November 2012 CA Sreenivasa is correct..firm has to pay rent and also eligible for deduction of such rent paid even though its paid to partner..

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harsh

harsh (Querist)
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28 November 2012 Now assuming, the rent is not paid by the firm all these years as it belongs to the property of a partner , Now at the time of Reconstitution, the partner having the property claims an amount given to him by the remaining partners for enjoying the property for all these years.. Are the other partners liable to pay ?? if no, then specific reasons with provision of law.