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Huf partnership

MAYUR (PROP) (97 Points)

01 June 2019

sir,

please explain huf status partner in any partnership firm if yes Then his remuneration /profit/income who is receiving [showing]

huf- account

karta- (individual) account

Huf- -any member account (can show any member account)

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Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (167898 Points)
Replied 02 June 2019

The Hon “ble Supreme Court observed that a firm is a compendious way of describing the individuals constituting the firm. An HUF directly or indirectly cannot become a partner of a firm because the firm is an association of individuals. Even if a person nominated by the HUF joins a partnership, the partnership will be between the nominated person and the other partners of the firm. It further observed that if a karta or any other member of the HUF joins a partnership, he can do so only as an individual.

His rights and obligations vis-a-vis other partners are determined by the Partnership Act and not by Hindu Law. Whatever may be the relationship between an HUF and its nominee partner, in a partnership, neither the HUF nor any member of the HUF can claim to be a partner or connected with the partnership through a nominee.

It is clear that the Hon’ble Court has considered the earlier judgments and concluded that the HUF itself cannot become a working partner in the partnership firm. Therefore, there is no question for the HUF to become a working partner.

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