Huf as proprietor
ripu sudan Maroo (43 Points)
26 July 2020
Can a HUF can be made proprietor in a firm which is providing financial services?
4 Replies
CA Raj Doshi
(Practising CA)
(8924 Points)
Replied 27 July 2020
HUF cannot render professional services.
Professional services are occupations in the service sector requiring special training in the arts or sciences. Some professional services require holding professional licenses such as architects, accountants, engineers, doctors and lawyers.
Please evaluate if Financial services fall under any of this category
Professional services are occupations in the service sector requiring special training in the arts or sciences. Some professional services require holding professional licenses such as architects, accountants, engineers, doctors and lawyers.
Please evaluate if Financial services fall under any of this category
Maryam Hasan Meem
(Student)
(448 Points)
Replied 27 July 2020
Since HUF is one person as per Income Tax Act,
a Proprietor of a business can be an Individual or a HUF.
A Proprietorship concern is Not Governed by any Specific Law as such,
and therefore there is No Bar on HUF becoming a Proprietor of any concern.
a Proprietor of a business can be an Individual or a HUF.
A Proprietorship concern is Not Governed by any Specific Law as such,
and therefore there is No Bar on HUF becoming a Proprietor of any concern.
Sagar Patel
(Tax and Business Consultant)
(11611 Points)
Replied 27 July 2020
Some services are personalized services.Some services may not be personalized service. Ttarget='_blank' rel='nofollow' hrefore, income from personalized service can not be attributed to HUF income.
E.g.Sevices of doctor are in the nature of personalized services. I think you can not apportion you income to HUF income. However, a clinic may be run by HUF. From the income of the clinic you may draw some amount towards your personalized service. The income of clinic own by HUF would continue to be taxed in the hands of HUF.
So as you have to evaluate that things before any decision.
E.g.Sevices of doctor are in the nature of personalized services. I think you can not apportion you income to HUF income. However, a clinic may be run by HUF. From the income of the clinic you may draw some amount towards your personalized service. The income of clinic own by HUF would continue to be taxed in the hands of HUF.
So as you have to evaluate that things before any decision.
Recent Topics
- Income Tax Refund Deadline Shortened to Five Years
- Rectification Applications for Past GST Demands
- Where can I find a trusted provider to hire a skip
- GST Invoices Series
- FILING OF ITR AY 20-21
- CLAIMING OF U CLAIMED RCM
- Building construction works
- REGARDING GSTR-9 F.Y 2023-24
- Rectification to decrease income in SCHEDULE OS
- Can Statutory Auditor of a subsidiary become concu
Related Threads
CAclubindia
