Indore (Madhya Pradesh): CA Manoj P Gupta while addressing a workshop organised by TPA here has said that to convert the firm or company into Limited Liability Partnership (LLP), there should be consent of all partners or shareholders. The consent of banks and other creditors is also required. Unregistered partnerships can also be converted into LLP. But before conversion, it will be necessary to file complete details of Income Tax and GST.
He said that under the provisions of Section 47 of Income Tax, if the total assets of the company do not exceed Rs 5.00 cr. and the total turnover does not exceed Rs 60.00 lakh, then no income tax will be levied on conversion into LLP of the company. LLP agreement should be drafted very carefully otherwise it may be treated as transfer in law and taxed.
CA Krishna Garg said that on conversion of a firm or company to LLP, a new GST number will have to be obtained and all returns will have to be filed before conversion. To transfer input tax credit from the old firm or company, Form GA ITC will have to be filed under section 18/3 of CGST. TPA president CA JP Saraf delivered the welcome address. On this occasion a large number of members including CA Shailendra Singh Solanki, CA Manish Dafaaria was present.
