We would like to start a Service sector firm. It will be based in Kerala. Please help me with the following queries. 1. To incorporate it as a PARTNERSHIP FIRM or as L.L.P is better ? 2. Is there any difference in procedures of Monthly/ Quarterly/ Annual return filing and timings of VAT/CST/SERVICE TAX/INCOME TAX between Partnership and L.L.P. 3. Apart from easy to incorporate, what all are the differences between L.L.P and Partnership? 4. Shall we wait till clarification comes about new G.S.T rates and ruels to form?
09 November 2016
1. LLP is always better than a partnership firm 2. The procedure to file VAT / Income Tax and CST would be the same. But if you want to start a service sector firm, why do you want to pay VAT or CST. VAT and CST would be applicable for sale of goods 3. In LLP the liability of the partners are restricted to the profit earned by the firm unlike partnership firm where personal properties can also be liable 4. You can register now and later convert in GST regime.
09 November 2016
Thank You, M'aam for the reply. It was very much informative... M'aam,
I asked about VAT/CST to know whether there is any difference between LLP and Partnership in any of the tax procedures.
I have read somewhere that in LLP, the partners are restricted to the amount mentioned in the LLP agreement. As m'aam told , it is restricted to the profits of the firm. Can you please elaborate on the same?
And regarding registering , I want to get a clarification also, which is the following:
Will there be different rates and procedures of GST for LLP and Partnership once GST is implemented? If so, and is not known till March, I may wait for clarification. This was in my mind when i asked whether i should wait for GST Clarification.
CAclubindia
