Partners of LLP have remuneration conditions like Directors of companies?
Companies Act specifies the extent upto which directors can draw the remuneration from the company.
Does LLP Act have any such provisions?
Do LLP Act specifies the limit upto which partners of LLP can draw the remunerations?
There is no restriction under LLP act. But the remuneration must be authorized by the LLP agreement and maximum limit must also form part of the agreement.
Income tax deductions for remuneration is governed by Sec 40(b) i.e same as applicable to partnership firms
what if one has not mentioned the minimum and maximum limits in the agreement but agreed verbally?
I have a doubt wrt Service tax of LLP . Whether LLP is a body corporate under Service tax law ? Whether the partial reverse charge mechanism is applicable to LLP ?
Very good doubt . Actually, eventhough LLP is a body corporate, it is not given such a status under Service tax. It is still treated as a Partneship Firm. Accordingly, partial reverse charge mechanism is not applicable to LLPs. Its a very good advantage for small LLPs who are on the receiving end as the burden is totally now shifted to Service providers