Will the expenses incurred by an LLP to sponsor the education expense of its partners who are pursuing higher studies for the benefit of the LLP will be outside the LRS limit of such individuals (partners)?
Liberalised Remittance Scheme - As on Apr 06, 2023
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Separate legal entity: LLP sponsored partner education expenses fall outside partners' LRS limits and count as LLP transactions. Expenses incurred by an LLP to sponsor partners' higher studies for the LLP's benefit fall outside the partners' Liberalised Remittance Scheme limits because the LLP is a separate legal entity; such sponsorship is treated as a residual current account transaction of the LLP and not subject to individual LRS ceilings.
Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
Provisions expressly mentioned in the judgment/order text.
Separate legal entity: LLP sponsored partner education expenses fall outside partners' LRS limits and count as LLP transactions.
Expenses incurred by an LLP to sponsor partners' higher studies for the LLP's benefit fall outside the partners' Liberalised Remittance Scheme limits because the LLP is a separate legal entity; such sponsorship is treated as a residual current account transaction of the LLP and not subject to individual LRS ceilings.
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