Dear Experts,
When constitution of Partnership changes...how the firm land (purchased in the name of Firm, representing by its partners) treated...whether it can be automatically converted to ongoing partners as done in Companies Act or is to be re-registered to new incoming partners name...?!
As per my understanding: "As per law of the firm, unlike company, Partnership Firm/PF is not a legal entity. Hence the property is not registered in the name of a registered partnership concern. This makes the difference between company and partnership firm." Still there's a confusion that PF is a legal entity or not and how the Firm land transferred when constitution changes as per Land Transfer Act. Can you clarify it..?
Hello Sir,
A partnership firm is not a legal entity. As per section (4) of Indian PartnershipAct, 1932, 'partnership' is the relation between persons who have agreed to share the profits of a business carried on by all or any one of them acting for all. But for tax purposes, a partnership firm is a legal entity.
