banner_ad

Can two partnership firms form a new firm ?

This query is : Resolved 
Profile Image

Profile Image

(Querist)
28 May 2013 Hello everyone,

suppose AB & CO, CD & CO are two partnership firms.

Now they both want to form a partnership firm to carry a particualr business.

can they form a partnership firm and if yes then can the partners of both the firms (are working partners) can claim the remuneration as per section 40(b) ?
Profile Image

CA VISHNU GAVKARE

Profile Image

CA VISHNU GAVKARE (Expert)
29 May 2013 Yes two firms can form new firm as partnership is between 2 or more persons and not Individuals. But from new firm partners of old firm can not claim remuneration as remuneration is allowed to working partner. A firm being an unnatural person can not be a working partner. hence no remuneration allowed.
Hence it is advised that partners of old firms becomes partners in new firm rather making their respective as partner.
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now


CCI Pro
Join the CA Students WhatsApp Community for ICAI Updates, Trending Courses & Notes!


Similar Resolved Queries


loading


Unanswered Queries


banner

Trending Online Classes

view all classess

CCI Pro
Meet our CAclubindia PRO Members
Subscribe Now

Follow us
add to google news



Answer Query



Quick Links



Browse by Category




Latest Job Openings

View all
Company
Featured 02 May 2026
Senior Executive

hitesh chandwani & co

Pune

B.Com

View Details
Company
Featured 29 April 2026
Manager- Finance and Compliance

Naveen Fintech Pvt Ltd

Kolkata

CA Inter

View Details
Company
Featured 14 April 2026
GST CONSULTANT

Abhishek G Agrawal & Co.

Korba

CA Final

View Details
Company
Featured 13 April 2026
GST CONSULTANCY

Abhishek G Agrawal & Co.

Korba

CA Final

View Details
Company
Featured 28 March 2026
Accountant

Ashok Amol & Associates

New Delhi

B.Com

View Details
Company
Featured 28 March 2026
CA Final

Ashok Amol & Associates

New Delhi

CA Final

View Details
Company
Featured ARTICLESHIP 19 March 2026
Article Assistant

Gupta Sachdeva & Co. Chartered Accountants

New Delhi

CA Final

View Details
Company
Featured 14 March 2026
Associate CA

N N V Satish&co

Hyderabad

CA

View Details