Point of Taxation Rules - LLP

[PANKAJ GROVER]

Dear Sir

Whether clause 7 of Point of Taxation Rules, 2011 of Notification No.25/2011 dated 31st March 2011 - exempting CA, CS, CWAs (Individuals and Partnership Firms) from accrual basis, whether this clause exempts LLPs also

Regards

RAPG & Co

[Surender Gupta]

The benefit of payment of service tax on receipt basis is allowed only to "individuals or proprietary firms or partnership firms." LLP, though incoporated, but basic nature of LLP is partnership firm and therefore, in my view this benefit is also avaiable to LLP also.

[YAGAY and SUN]

LLPs are also exempted under clause 7 of the POTRs.

AI Summary

Payment on receipt basis for service tax extends to LLPs providing specified professional services, practitioners say.
Whether clause 7 of the Point of Taxation Rules, 2011-permitting payment of service tax on a payment/receipt basis for specified professionals-covers LLPs: practitioners replying to the query conclude that LLPs are covered because their basic nature is that of a partnership firm, and therefore LLPs providing the listed professional services may adopt the payment/receipt basis for service-tax liability under clause 7.