Can a company pay rent for property used of its director,s HUF?
Replies (3)
Quick Summary
This discussion explores the legality of a company paying rent to a director's Hindu Undivided Family (HUF). It clarifies that since a HUF is a separate legal entity, a company can indeed pay rent for property owned by the HUF, provided the property is used for business purposes, such as a godown for packing and printing. This arrangement is considered legal, logical, and reasonable.
Why not ? HUF is a separate legal entity. If the property owned by the HUF, is given on rent to any related or unrelated person, it is completely legal,logical and reasonable.