we were a partnership firm registered under indian partnership act 1932. we have now converted the partneship firm into a LLP under LLP act 2008. whether change from partnership firm under 1932 to LLP under 2008 would require us to pay service tax from quarterly basis to monthly basis
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Rule 6 of service tax Rules reads as under:
6. Payment of service tax. -
(1) The service tax shall be paid to the credit of the Central Government,-
(i) by the 6th day of the month, if the duty is deposited electronically through internet banking; and
(ii) by the 5th day of the month, in any other case,
immediately following the calendar month in which the 22[service is deemed to be provided as per the rules framed in this regard]:
Provided that where the assessee is an individual or proprietary firm or partnership firm, the service tax shall be paid to the credit of the Central Government by the 6th day of the month if the duty is deposited electronically through internet banking, or, in any other case, the 5th day of the month, as the case may be, immediately following the quarter in which the service is deemed to be provided as per the rules framed in this regard
First proviso to Rule 6(1) states that partnership firm is required to pay tax quarterly. The rule does not specify whether the partnership is a partnership with limited liability or unlimited liability. Thus, both the partnership with unlimited liability governed by the provisions of Partnership Act, 1932 as well as LLP, both will have to pay tax quarterly.
Moreover, Press Note dated 10/07/2009 states about the Taxation of LLP pursuant to provisions of Finance Act, 2009 also acknowledges the fact that the LLP will be taxed like normal partnership firm.
In my view partnership firm even LLP is required to pay s.tax on quarterly basis. Under Service Tax provisions only the term partnership has been given mention .
Due date for deposition of tax and filing of return in your case, will remain same.