Partnership
Manoj
(Querist) 19 December 2011
This query is : Resolved
A, B, C, D and E are joint owners of land in Gujarat. A partnership firm is created in the year 2009 by the aforesaid owners with F, G, H, I & J the partnership is formed having nature of business of development of land and construction of units. A, B, C, D & E brings the land jointly owned by them in partnership and F, G, H, I & J bring capital for construction of units i.e residential and shops.
Now my query is as follows :
(1) Can A, B, C, D and E bring their jointly owned property in partnership firm. IF yes then how and if no why. Can a joint property be brought in partnership firm without any document.
(2) What is the stamp duty applicable in this case of partnership deed
(3) If units are constructed on this land than who will execute the agreement for sale and sale deed of these units.
(4) Can any of these partners authorise any one of them to execute the deeds and documents of the units. If yes then how.
(5) Suppose A, B, C, D, and E only form a partnership firm and bring the land jointly owned by them in the partnership firm and then sale the land as partners of the partnership firm. Is it a valid sale.
(6) Whether any development agreement is required to be executed between them.
Raj Kumar Makkad
(Expert) 20 December 2011
1. Joint property of all can be brought in partnership firm but it should be with valid title deed as without requisite documents, the same cannot form the part of partnership firm as its title is required to be transferred in the name of the firm.
2. It shall depend upon the value of the property and the rate of stamps to be enquired locally from the office of regisrar.
3. As per agreement of the partnership firm, some one of the partners can be delegated this duty.
4. By passing a unanimous resolution.
5. Yes.
5. It depends upon the requirement of their project.
Guest
(Expert) 20 December 2011
Individuals and firm of individuals are two different entities. So, I would like to say with a bit of difference, as follows:
1) As like cash, property unless brought to account of the firm cannot form part of the firm, i.e., without due transfer in the name of the firm, which cannot be without a valid transfer deed with duly paid stamp duty.
2) Stamp duty for the property will be the same as for the transfer of property as usual from one person to another at the prevalent rate.
3) All of the partners of the firm jointly, or managing partner, if prescribed in the partnership deed, or any one of the duly authorised partner by all other partners jointly.
4) Authority to any one partner can be given through a proper power of attorney granted by all the partners jointly, or by including a clause in the partnership deed. Any resolution would not work in this case, as the firm is not governed by company law.
5) It would be valid to transfer the property as partners, if the property is not brought to the account of the firm, but for the purpose of Income Tax Act and audit point of view with particular reference to the accounting, profit & loss, assets and liabilities, complications can arise.
6) Development agreement, with modus operandi, can form as one of the part of the partnership agreement, itself.
Manoj
(Querist) 20 December 2011
Good evening. Thanks to experts
