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Llp and tax

Alpha620 (Nothing) (25 Points)

31 May 2016

Hello Everyone, Iam incorporating an LLP in india for webdevelopment and software. I have the following doubts

1) how do we get tax from our clients? should we immediately transfer the funds we recieive to our company account?

2)is it required for the llp to maintain paper records or will digital records suffice?

3)should we use money in company account only for operation costa sucha s buying tools or can personal money be used?

4)how is the splitting of profits process actually done?

IM NEW TO THIS SITE AND AM EXTREMELY SORRY IF THE TOPIC/ FORUM IS WRONG.. I KINDLY REQUEST EVERYONE TO HELP..

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5 Replies

CA Rohit Jain (Practice) (1865 Points)
Replied 31 May 2016

First of all, you have get your firm registered as LLP. For that all the partners should obtain digital signature. After obtaining digital signature you and your partners must apply for DPIN. After obtaining DPIN you should file documents to ROC for incorporation of LLP.
After being incorporated you can open bank accounts in the name of LLP. Profit sharing ratio should be mentioned in LLP agreement. As your business is of website development and software, you should also obtain TIN and service tax registration number.

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CA Rohit Jain (Practice) (1865 Points)
Replied 31 May 2016

with regard to maintenance of books you can maintain them digitally. Also you have obtain PAN and TAN for income tax purooses

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CA Rohit Jain (Practice) (1865 Points)
Replied 31 May 2016

You can contribute your personal money as capital contributions to LLP and then in turn use for business purpose.
Alternatively partners can give unsecured loan to LLP with a fixed rate of interest