Hello Seniors & friends,
Recently I got to know abt a case wherein a Firm's Properitor is a HUF. However, such an arrangement is carrying on since last 8 years and the Income Tax Department has been doing the assessment regularly without any objection.
But I would like to know whether it's possible for a HUF to be the properitor of a Firm?
An early responce will be highly appreciated.
with Regards,
Shefali.
Yes HUF Can Be Proprietor Of A Firm.
Definately HUF can be proprietor of a Proprietory Concern. Even HUf can be a partenr in the Firm , HUF is a separate legal entity and can own proprietpry Concern. There are many Proprietory concerns which are owned by the HUF. The documents relevent to the firm are signed as
For ABC Trading Co.
[Prop : S.Bajpayi (HUF)]
S.Bajpai
(Karta)
yes, HUF can be prop as well as partner of a firm.
Thanks for the reply friends.
CAclubindia
