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Dual Current account of LLP

ramya s (50 Points)

01 July 2022

Dear Tax Experts,

We are 3 partners in a registered LLP - Me, My wife and biz partner.

W have 2 questions:

1> Can we have more than one biz/curent account in same or different banks?

2>If we can have more than one biz/current account then can we apply composite tax for one account and the other as normal account.

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8 Replies

CA Rashmi Gandhi (Chartered Accountant) (86323 Points)
Replied 01 July 2022

1. Yes
2.No you can't , either you go for composite or normal for both .

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pavan prabhas (206 Points)
Replied 01 July 2022

Composite tax is applicable on business basis not for current accounts and as per the act if more than one business vertical are there and different tax scheme for different verticles are not allowed.

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ramya s (50 Points)
Replied 02 July 2022

Thanks a lot Rashmi and Pavanji.

1> 5Cr is the limit for composite tax...is it going to change in future?

2>What is the impact if we change from normal to Composite tax and vice versa .

currently we have normal current account. But competitors are giving heavy discount rate...so we are thinking of going for composite but we are not aware of the impact in future?

3 Like