Can huf start trading business??
This query is : Resolved
Querist : Anonymous
Querist :
Anonymous
(Querist)
24 November 2012
Dear Expert,
My friend(Prop.) is the manufacturer of rubber products, he paid Excise duty and MVAT on the goods produced and sold by him.
Now he wants to start a new trading business of Rubber products in the Name of his HUF.
Can he obtain VAT & CST no. under HUF??
Can he sale or purchase materials from/to his HUF trading business??
There is another realted business on the name of his wife....
Can All three can purchase/ sales goods among themself?? its a genuine business ...no adjustment and all...
pls express your opinion ASAP..
Thansks in Advance
My friend(Prop.) is the manufacturer of rubber products, he paid Excise duty and MVAT on the goods produced and sold by him.
Now he wants to start a new trading business of Rubber products in the Name of his HUF.
Can he obtain VAT & CST no. under HUF??
Can he sale or purchase materials from/to his HUF trading business??
There is another realted business on the name of his wife....
Can All three can purchase/ sales goods among themself?? its a genuine business ...no adjustment and all...
pls express your opinion ASAP..
Thansks in Advance
24 November 2012
Yes the HUF can carry on a business in its own name. However, if the Karta introduces cash or any capital in the HUF, the income shall be clubbed in the hands of the Karta.
The HUF, the Karta and the Karta's wife can carry on business in their own name.
The HUF, the Karta and the Karta's wife can carry on business in their own name.
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