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 andSUN]

LLPs are also exempted under clause 7 of the POTRs.

AI Summary

Limited Liability Partnerships Eligible for Clause 7 Exemption Under Point of Taxation Rules, 2011 for Service Tax Payment. A query was raised regarding whether Limited Liability Partnerships (LLPs) are exempt from the accrual basis under clause 7 of the Point of Taxation Rules, 2011, as per Notification No. 25/2011, which exempts Chartered Accountants, Company Secretaries, and Cost and Works Accountants who are individuals or partnership firms. Two responses were provided, both suggesting that LLPs, despite being incorporated, share the basic nature of partnership firms and are therefore eligible for the exemption, allowing them to pay service tax on a receipt basis.