Tax treatment of LLP is same as Partnership firm as per IT - Professionals - Taxation - TIK Share
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Tax treatment of LLP is same as Partnership firm as per IT


CA Pulkit Sharma

2013-10-14

The LLP is a new form of business structure that Indians got introduced to. LLP are treated same as Partnership firms in India for taxation matters.

The various provisions related to LLP taxation are:

  1. As per amendment made by Finance (No. 2) Act, 2009, a Limited Liability Partnership (LLP) is included in the definition of ‘Firm’, ‘Partnership’ and ‘Partner’.
  2. The provisions of Taxation applicable to a Partnership Firm constituted under Indian Partnership Act, 1932 will equally be applicable to a firm constituted under LLP Act, 2008

So LLP is taxed at 30% like Partnership firms only and share of Profit by partners is not taxed.