My query is whether a Limited Liability partnership is included in the term 'Body corporate' for the purpose of Reverse Charge mechanism for services like Manpower supply and works contract.
I have seen various different opinions expressed on this topic, some stating that LLP is included in definition of 'firm' and hence is not a body corporate. While there are some other views stating the definition of body corporate make no reference to definition of firm and hence LLP is not excluded from term body corporate.
Please share your opinion on this.
LLP as body corporate affects reverse charge applicability for service tax, especially in partial reverse charge services. The debate concerns whether an LLP is subject to the service tax reverse charge regime: service tax instruments refer to ''partnership firm'' for some reverse charge services, while the LLP statute explicitly defines body corporate to include a limited liability partnership; consequently, classification under the LLP statute may determine whether LLPs fall within reverse charge terminology, with particular uncertainty remaining for partial reverse charge services like works contracts. (AI Summary)
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