Limited Liability Partnership


Partnership & Company .Comparison Between LLP.

LLP Partnership 1) Governing Law 2) Registration 3) Nature Company 4) MOA & AOA / Partnership Deed or Agreement 5) Perpetual succession .

LLP Partnership Company 6) Power of Member / Partner / Director 7) Liability 8) Audit of Accounts 9) Agency Relationship 10) Ownership of Assets .

Remuneration & Interest To Partners .

Remuneration  Section 184  Section 40(b)  Conditions for allowing Interest  Conditions for allowing deduction of interest.  Disallowance of interest and interest u/s 40A(2). deduction of remuneration  Remuneration paid above the limits of section 40(b) will be exempt at hands of partner of LLP .

Alternate Minimum Tax on Limited Liability Partnership .

80ID. 80IB. 80IC. Applicability  Rate of AMT  Adjusted Total Income (Only for the LLP)  Audit Report  Tax Credit for AMT Adjusted Total Income Calculation Total Income as compute under the xxx normal provisions of the Income Tax Act Add: Deductions under Chapter VI. 80IAB. 80IE and 80JJA Add: Deduction under section 10AA (Deduction in respect of profits of SEZ units) Adjusted Total Income xxx xxx .xxx A (C) that is. income based deductions claimed under Sections like 80IA.

No tax if: ▫ Rights and obligations of partners . intangible assets not taxed if: ▫ Conversion in accordance with Sec. Taxable in PY not complied with. 60.00. ▫ All assets and liabilities transferred. 2008 ▫ Sales< Rs.000 in 3 Preceding yrs. ▫ Shareholders = Partners ▫ > 50 % profit for 5 yrs. • . 56/57 of LLP Act.CAPITAL GAIN ISSUES ON CONVERSION OF AN EXISTING FIRM/COMPANY INTO AN LLP • Partnership Firm into an LLP: Treated as equivalent for Income Tax. Company into an LLP: Transfer of capital assets. ▫ No transfer of Asset or Liability after conversion.

Obtaining DPINno. and Digital Signature Checking the name availability Drafting the LLP agreement Filing the Incorporation documents Filing the conversion agreement Certificate of Registration Information to Rigistrar of Companies. .PROCEDURE TO CONVERT TO LLP Deciding the partners and designated partners.


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