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HUF (Proprietorship) Commission Income // Partner & Karta Same

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H Jain

49 Points Posted on 09 February 2023

Dear Sir or Madam,

I understand, commission cannot be paid to non business HUF as it ll be added to personal income of karta or members of HUF by whose efforts the sales are claimed to be made for commission. But:

1. Can a partnership firm pay commission to a GST registered HUF Firm (proprietorship)?

2. If yes, Can they still pay commission if the partner in partnership firm & Karta of HUF firm are same?

Thanks.

Replies (3)

Quick Summary

This discussion clarifies the rules around commission payments to HUF (Hindu Undivided Family) firms. It confirms that a partnership firm can indeed pay commission to a GST-registered HUF firm. Furthermore, it addresses the scenario where the partner in the partnership and the Karta of the HUF are the same individual, confirming that commission payment is still permissible in this situation.