Proprietor Vs Proprietory firm

What are the legal differences between a proprietor and his proprietory firm on following points-

1. Legal status (Whether both are treated separate or same as legal entity)

2. whether proprietory firm can be sued or proprietor is to be sued ?

* Whether proprietor and his firm have to have separate PAN cards?

4. Whether proprietor and his firm have to file separate IT returns returns ?

5. What happens if proprietory firm which has assets and liabilities is closed ?. Does it automatically transfer assets and liabilities of proprietory firm to the individual i.e. proprietor ?

6. What happens if proprietory firm's bank account is closed ? does money in the account becomes proprietor's?

7. Can proprietory firm's service tax no, pan, shop license etc be closed ?

Pls guide.

Replies (1)

The Proprietor and the firm are one and the same. IT return of the proprietor is filed and not of the firm. The income of the firm is his own income and is included under Profit & gains from Business and profession.


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