LIMITED LIABILITY PARTNERSHIPS MAY LOSE SHEEN AS NEW TAX RATES KICK IN – BUSINESS STANDARDS
LIMITED LIABILITY PARTNERSHIPS MAY LOSE SHEEN AS NEW TAX RATES KICK IN – BUSINESS STANDARDS
The basic tax rate for companies has been reduced to 22 per cent from 30 per cent earlier, and that for new domestic manufacturing companies has been cut to 15 per cent
Limited liability partnerships (LLPs) may lose their sheen in the country as the tax differential vis-a-vis companies has widened following the government’s decision to slash corporation tax rates. The basic tax rate for companies has been reduced to 22 per cent from 30 per cent earlier, and that for new domestic manufacturing companies has been cut to 15 per cent.
The effective tax rates for these entities, including surcharge and cess, is 25.17 per cent and 17.16 per cent, respectively. LLPs, on the other hand, are taxed at 30 per cent, with an effective tax rate of nearly 35%.