Question ID :
40689
44ADA APPLICABLE TO LLP OR NOT
My first question is Whether Section 44ADA applicable to LLP?
and second, Can LLP pay professional fees to its Partner (If Partner is not taking any salary) ??
Posted by
Harish Kumar
on
Jun 18, 2020
Filed Under
DIRECT TAXES
44ADA is not applicable to LLP.
Posted by
B.CHACKRAPANI WARRIER on
Jun 18, 2020
Answer ID :
80567
Section 44ADA is not applicable to LLP. LLP can pay professional fees to partner if he has applied skills to provide professional services to LLP.
Posted by
CA. chunauti dholakia on
Jun 18, 2020
Answer ID :
80568
(1) In absence of any specific exclusion as like u/s 44AD, provisions of section 44ADA are applicable to LLP as well.
(2) So far LLP law is concerned such payment can be made. For allowability of such expenses in the hand of LLP provisions of section 40(b) shall be applicable. Means provision of payment of professional fees shall be in the LLP agreement, payment shall be in the limit laid u.s 40(b).
Posted by
Goutam Chand Baid FCA on
Jun 22, 2020