Can a partnership firm become partner in another firm ?
This query is : Resolved
05 January 2012
Dear Sir,
Can a partnership firm be registered with another firm as one of the partner ?
In other words, whether a partnership firm can become a partner in another partnership firm ?
Please advise...
Can a partnership firm be registered with another firm as one of the partner ?
In other words, whether a partnership firm can become a partner in another partnership firm ?
Please advise...
16 January 2012
A partnership firm does not have a seperate legal identity. It cannot become partner is another partnership firm
01 April 2015
Kindly refer to section 4 of the Partnership Act 1932 which provides that Partnership" is the relation between persons who have agreed to share the profits of a business carried on by all or any of them acting for all. The term person' as used in Section 4 does not include a firm. This is because a firm is not a separate legal entity. Hence two partnership firms cannot enter into partnership, though all the partner of the two firms may form a new partnership out of their separate firms provided their number does not exceeds the mandatory number. ( Case law: Duli Chand etc. Comm. of Income Tax, AIR (1956) Sc, 354)
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- Is Aadhar PAN linking required for opening bank account?
- CPC Processing IT Return for AY 2023-24 without recognizing the Taxation Option under New Regime
- Where to show the RCM on Rent paid to unregistered landlord
- Applicability
- GSTR-3B - Do I file nil when there is no sale but I've bought raw materials
- RCM - commercial rent paid to URP under GST
- TDS NUMBER SURRENDER
- Legal heir raised refund , but refund issued to the closed account of deceased.
- Offsetting interest income against derivative trading losses
- Application of 115BAC
- Issue of gst e invoice
- Interchangeable words in accounts
- Adjusted profit/Loss in the case of LLP and Pvt. Ltd.company
- How to adjusted advances given or receipt
- Foreign vendor without PAN unable to to register due to non receipt of OTP on foreign number ?
- 133(6) DIN INVALID format error - ->WHERE TO REPLY 133(6) notice?
- Query for dubts
- Regarding Resignation by Auditor from Pvt. Ltd.
- Regarding einvoice taken on nil rated sales
- Strategical investment in Public listed company
Trending Online Classes
-
Excel Mastery Program
CA Rishabh Pugalia
CAclubindia
