Government employee as a huf/partner of the firm

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

23 April 2013 1. Whether HUF (Karta of HUF is an Government Employee) can be a partner of Partnership Firm.

2. Whether two HUF partners and one Individual partner can create a partnership firm. HUF member want to get the powers of all Major rights/decisions of firm.

Please guide

Thanks & Regards

CA UMESHKUMAR R. ACHARYA

CA UMESHKUMAR R. ACHARYA (Expert)
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11 May 2013
Normally As per Government rules employee can not do any business or profession , special permission is given to doctors etc due to non availability of same. so in my opinion employee can't become partner even as karta of HUF.

Two HUF and one individual may form partnership firm in which karta of HUF shall
enter as pertner on behalf of HUF.But in my
opinion such formation is not advisable considering the complexity of laws
and procedures in case of HUF.
for e.g. Bank in normal circumstances donot
grant any loan to HUF or Firm in which HUF
is a partner.

C A S.S.Agarwal, M.Com.,LL.B,

C A S.S.Agarwal, M.Com.,LL.B, (Expert)
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30 June 2013 Yes I agree with the expert. Forget about the karta being govt. employee becoming partner in any firm as karta of HUF you have to submit the business or profession done by your wife and children to the Govt. department

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