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Partnership vs proprietorship

CA SANDESH MAHIPAL (Practicing in GST and MSME ) (1985 Points)

12 October 2012

Whether all the partners of partnership firm after dissolution can be partners in the sole proprietorship firm and profits of that proprietorship firm can be distributed to all the partners for tax purposes in their profit sharing ratio?

Thanks in Advance

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6 Replies

CA Ayush Agarwal (Kolkata-Pune-Mumbai) (27186 Points)
Replied 12 October 2012

in Sole Prop Firm, No Partner Concept is There.

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CA SANDESH MAHIPAL (Practicing in GST and MSME ) (1985 Points)
Replied 12 October 2012

So what should be done so that income of a single small business can be devided in 4 individuals for taxation purposes? Whether joint venture would work in this case or it will attract some additional taxliability

sai kiran mulukalla (s) (61 Points)
Replied 12 October 2012

Originally posted by : CA SUNNY AGGARWAL
	Whether all the partners of partnership firm after dissolution can be partners in the sole proprietorship firm and profits of that proprietorship firm can be distributed to all the partners for tax purposes in their profit sharing ratio? Thanks in Advance

sai kiran mulukalla (s) (61 Points)
Replied 12 October 2012

Proprietorship means only one person handling Enterprise.So qestion of partners in sole proprietory doesn't arises.

(Guest)

after the desolution of the partnership firm, there is no existance of partnership firm, and the sole properitership firm there are no partners, the earlier partners can not claim for the individual properitership profit.