vyjayanthimala (Accounts) (245 Points)
11 October 2012Dear Sir,
In one of the service tax article, it was mentioned
as " Business entity registered under Body Corporate"
Regarding this, I want one small clarification.
1. Whether Partnership firm also comes under this or not
Kindly explain me if it is not coming under body corporate.
with regards,
mala
Vikas
(CA)
(1135 Points)
Replied 11 October 2012
The definition of Body Corporate has been given in Sec.2(7) of the Companies Act, 1956;
In simple words, something having its separate legal status is treated as a body corporate.
In case of Partnership firm the liability is unlimited on the partnership; hence it does not have a separate idenitity; hence it is not a body corporate;
whereas an LLP is a body corporate in the same view as above.
CAclubindia
