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Can a partnership firm become partner of another partnership
Can a partnership firm with 6 (a,b,c,d,e,f) partners let's say M/s. SUPER SIX become a partner with another partnership firm called M/s. SYNDICATE already having 4 (g,h,i,j) partners.
If yes than plz tell me
Hw would the partners names appear in the partnership deed of M/s. SYNDICATE
G 20%
H 20%
I 20%
J and 20%
SUPER SIX represented by A - 20%
if this is okay than does the profit after tax percentage of M/s. SUPER SIX arising from M/s. SYNDICATE can it straight away go into M/s. SUPER SIX and be divided and passed on amongst all the 6 partner's capital accounts. In M/s. Super Six
Kindly let me know friends
Replies (3)
no partnership firm cant become partner in another firm , because its not juristic person
Agree with Disha
Kindly refer the Dulichand Laxminarayan case law
In Dulichand Laxminarayan v. CIT(2)[1956]29 ITR 535, The Supreme Court has also held that “partnership” being the relation between persons, who have agreed to share th e profits of a business carried on by all or any of them acting for all, and “persons” who enter into the partnership being called individually “partners” or collectively “a firm” the word “person” contemplates only natural or artificial, i.e., legal persons, and neither a firm nor a Hindu undivided family can be that person
I think u can enter in to a joint venture agreement between 2 partnership firms.
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