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Paying rent from Company to Partnership Individual

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Fareed

Accountant

90 Points Posted on 14 October 2021

we are private limited company, we have plan to rent a building for business, the rental place was belongs Partnership firm.

They want us to pay rent on name of individuals (two partner's name).

shall we pay rent from company to partnership firm individual..?

is it allowable..

please clarify.

Thanks & Regards

Fareed

Replies (2)

Quick Summary

This discussion addresses whether a private limited company can pay rent for a business building to a partnership firm, specifically when the partnership requests payment to individual partners' names. The advice clarifies that rent should always be paid directly to the legal owner of the property, which in this case is the partnership firm itself, not its individual partners.