Shivam RC (Student) 31 May 2020
Partnership Firm can own Assets only in the name of Partners. Therefore the vehicle needs to be get registered in the name of any one Partner.
If the car is purchased from the resources of the firm or the Purchase Consideration is credited to the partner's current account or capital account, then it shall be construed that the firm is the owner of the car. So although the car is being purchased in the name of a partner, it can be treated as the asset of the firm and accordingly the firm can claim Depreciation on it.
There are many good Case Laws regarding this matter.
( Disclaimer : This is not a professional advice. I have given my personal view and opinion. Kindly confirm with other learned members of this forum before taking any decision. )
Himanshi Garg (Ca Article) 31 May 2020
Section 4 of the Partnership Act defines partnership as the relation between person who had agreed to share the profit of the business carried on by all or any of them acting for all. Partners are collectively called as “firm”. Thus Partnership is merely an association of individuals and the firm’s name is only a collective name of those individuals who constitute the firm.
Therefore the partnership firm can own assets only in the name of the partners.
Further, as advised by @ Shivam RC Sir, If the car is purchased from the resource of the firm or the purchase consideration is credited to the partner’s current account or capital account then it shall be construed that the firm is the owner of the car.
Shivam RC (Student) 01 June 2020
@ Sahil Shah, Yes there might be a different view incase of LLP.
A Limited Liability Partnership ( LLP ) consists of both the features of Company and Partnership. It's a hybrid of Company and Partnership form of business organisation.
A LLP is a "SEPARATE LEGAL ENTITY" which means that it can own properties in its name, it can sue and be sued in its own name and it's continuity does not depends on it's partners, who may change from time to time.
Therefore being a separate legal entity, LLP can own properties in its own name. So the vehicle should be registered with the RTO in the name of Firm incase of LLP.