Become a Certified GST Practitioner in just 58 hours. Register Now!

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)

Reply
Follow
Share

5 Replies

Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (182814 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.

2 Like