Legal Question in Business Law in India

can a person and his h.u.f. enter in to the partnership firm
wheter a family of husband(Mr. ABC), wife(mrs. DAC) and minor daughter(miss EAC) can creat a Hindu Undvided Family? or other way whether HUF can be created with only one male member in the family.

if yes,Mr.A and his own H.U.F.(ABC HUF)only can crate Partnership Firm? or other way, whether the firm of only two partners can be created with person himself(Mr. A) and his own H.U.F(ABC HUF).Please note that there will be only two partners.

whether a person himself and his own huf can creat the partnership firm

Asked on 6/05/03, 6:46 am

2 Answers from Attorneys

Anil Kumar Tandale T.Anil Kumar

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Re: can a person and his h.u.f. enter in to the partnership firm

Partnership arises from contract and NOT from status[see sec.5 Partnership Act 1932].The members of HUF carrying on business are not partners. Family of husband, wife and minor daughter can constitute HUF. There is no prohibition to form partnership firm in the manner suggested by the querist. This has to be evidenced by written contract clearly apportioning shares of profits. The minor can only be conferred benefits of partnership, i.e., she will not be liable for losses.There can be only minimum two partners. The tax assessment shall be governed by sec.184 of Income Tax Act. All partners,[both partners in this case] shall be jointly and severally liable for taxes payable, vide sec.188-A IT Act.

Answered on 6/08/03, 10:12 am

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