Assessment of Limited Liability Partnership (LLP)

 

Table of Contents:

·         1. Taxation of Limited Liability Partnership (LLP)

·         2.   [Section 140]- Signing of Income-Tax Return of LLP:

·         3.   [Section 167C]- Recovery of Tax of LLP:

·         4.   [Section  47(xiiib)]- Transfer of Capital Asset or Intangible Asset to Limited Liability Partnership

·         5.   Special provisions applicable in case of conversion of a Private Limited Company or a Non-Listed Company into Limited Liability Partnership (LLP)

o    (1)   Depreciation to be allowed proportionately in the year of conversion [First proviso to  section 32(1)]

o    (2) [Section 35DDA(4A)]- Successor LLP will be allowed deduction of payment under Voluntary Retirement  Scheme for the unexpired period

o    (3) Cost of acquisition of the asset in case the predecessor company has claimed deduction  under section 35AD [Explanation 13 to section 43(1) amended]

o    (4) Actual cost of the block of assets in the case of the successor LLP [Explanation 2C in  section 43(6) inserted]

o    (5) [Section 47A(4)]- Successor LLP and share holder of the predecessor company liable for capital gains if  prescribed conditions not satisfied in any subsequent year

o    (6) [Section 49(1)]- Cost of capital asset to LLP shall be the cost to be previous owner

o    (7) [Section 49(2AAA)]- Cost of the right of partner referred to in section 42 of the Limited Liability Partnership  Act, 2008 on conversion of company to Limited Liability Partnership

§  Section 42 of the Limited Liability Partnership Act, 2008 provides as under:

·         6. [Section 72A(6A)]- Carry Forward and Set-Off of Losses in Case of Limited Liability Partnership (LLP)

·         7.   MAT Credit of Predecessor Company will lapse [Section 115JAA]  shall not be  allowed to the successor LLP.

·         8. Alternate Minimum Tax (AMT) applicable to LLP and on all persons other than companies [Section 115JC to 115JF  Chapter XII-BA]

o    (A)   [Section 115JEE(1)]- To whom Alternate Minimum Tax (AMT) shall be applicable

o    (B)   Tax Credit for AMT:

 

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