Dear Sir,
I am sorry for distributing you. Please help me in the following case. It is about a partnership firm. I have renamed the partnership firm for stake of brevity.
|
PARTICULARS |
Partnership Firm X |
Partnership Firm Y |
|
Date of Formation |
Sept-2009 |
July 2010 |
|
Partners (Nos) |
3- Same Partners |
3-Same Partners |
|
Registered Firm (With Registrar of Firms in |
Yes, Separate Registration Number |
Yes:- Separate Registration number |
|
PAN Card |
Yes |
No |
|
Service Tax Regn |
Yes |
No |
|
Nature of Business |
Same |
Same |
|
Remarks |
N\A |
Partnership Deed of Y states that Y is just an unit of X |
According to me partnership firm Y is separate legal entity. Thus Partnership firm needs to comply income tax act Professional tax act and etc.
However the client is of the opinion that partnership firm is same as X and is only a branch. Thus no legal requirements are required for partnership firm Y. The client states that partnership firm X is only a shell company.
Please let me know whether my opinion is correct or the opinion of client is correct.
Thanks & Regards,
