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Can huf earn commision income?

yashsr (CA) (2285 Points)

05 July 2013

Hello,

Can HUF earn commission income? If no, can HUF itself be made the Proprietor of a Proprietorship and then earn commission income?

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2 Replies

Pulkit Sharma (CA Practice) (458 Points)
Replied 05 July 2013

HUF can earn commission income on its individual capacity. It can not earn commission based on holdin of karta but can if the commissioned is earned solely because of work of huf as a seperate entity.

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yashsr (CA) (2285 Points)
Replied 05 July 2013

Originally posted by : Pulkit Sharma
	HUF can earn commission income on its individual capacity. It can not earn commission based on holdin of karta but can if the commissioned is earned solely because of work of huf as a seperate entity.

I'm still confused! Say the PAN of the HUF is AAAHA0000A, can any type of of Commmission income be shown through this PAN by any arrangement? If yes, how? Directly or by making HUF as an proprietor of any Concern which is receiving the Commission?