08 September 2011
You have a few options: (a) Purchase the car in the name of firm, make an asset to the firm, or (b) Purchase the car in the name of partner by granting Loan to the partner from the firm and asset will be of the individual parner (c) Partner can himself purchase the car using his own funds and contract the same to the firm Reference must be had with the T&C stipulated in the Partnership Deed in any of the above cases.
08 September 2011
Firm is not a legal entity, unlike a company incorporated under Companies Act, 1956. Hence it cannot purchase car in the name of the firm. If partnership deed provides that a partner can buy a car for the company then, partner can buy in his name for the company. Example partnership clause: No partner shall without the consent of the other partners-(viii) Buy, order or contract any property or goods for the firm exceeding......................
08 September 2011
Partnership Firm is NOT a SEPARATE LEGAL ENTITY distinquished from its parners BUT is a BUSINESS and TAXABLE entity. References may be cited to Sections 14 and 15 of the Partnership Act whereby.... Unless the contrary intention appears, property and rights and interest in property acquired with money belonging to the firm are deemed to have been acquired for the firm. Subject to the contract between the partners, the property of the firm shall be held and used by the partners exclusively for the purposes of the business.
CAclubindia
