HUF (Proprietorship) Commission Income // Partner & Karta Same

H Jain (MD) (49 Points)

09 February 2023  

Dear Sir or Madam,

I understand, commission cannot be paid to non business HUF as it ll be added to personal income of karta or members of HUF by whose efforts the sales are claimed to be made for commission. But:

1. Can a partnership firm pay commission to a GST registered HUF Firm (proprietorship)?

2. If yes, Can they still pay commission if the partner in partnership firm & Karta of HUF firm are same? 

Thanks.