Limited Liability Partnership offers limited liability with partnership-style flexibility, forming a separate legal entity for professionals and entrepreneurs.
The Limited Liability Partnership (LLP) combines limited liability with partnership-style internal flexibility, constituting a separate corporate entity formed by registration; partners' liabilities are limited to agreed contributions except for fraudulent conduct. Formation requires subscription and filing with the Registrar, at least two partners and designated partners, annual accounts, solvency statements and conditional audit obligations. The Act permits conversion of firms and companies into LLPs with automatic vesting of assets and liabilities, grants investigatory powers to the Central Government, allows application of Companies Act provisions by notification, and prescribes voluntary and tribunal winding up with creditor protections. (AI Summary)

Negative list of services excludes specified public, agricultural, education and residential rental services from service tax, reshaping taxable scope.
Negative list defines services excluded from service tax, so services not on the list attract the budget rate. Exempt categories include government or local authority services with specific exceptions (postal speed post, certain transport, insurance agency, airport/port services, business support), Reserve Bank and foreign diplomatic services, extensive agricultural operations and related services, trading of goods and manufacturing processes, funeral services, transmission/distribution of electricity, pre-school to higher secondary and recognised/approved vocational education, renting of residential dwellings, specified financial services, and specified passenger and goods transport services with narrow carve-outs. (AI Summary)

Tax rate restructuring broadens service tax coverage and raises excise and customs levies, altering exemptions and transaction levies.
Budget proposals restructure income tax tiers with a zero-tax lowest band and capped exempt interest income; corporate tax unchanged. Securities Transaction Tax for delivery trades is reduced. Service taxation moves to a negative list with limited exemptions while service tax and general excise rates are increased. Specific measures include exemption of school education, selective film copyright exemptions, full excise exemption for branded silver jewellery, higher excise on large cars, customs duties on gemstones, higher basic customs on certain precious metals, and increased sin taxes on tobacco. (AI Summary)