What is the advantage to open a huf firm
This query is : Resolved
Raj Sharma
(Querist)
22 April 2015
sir..
can u please tell me the advantage of open a Huf firm instead of Pvt ltd co..
CA Neelam Maheshwari
(Expert)
22 April 2015
1. Advantage of basic exemption limit.
2. Slab rates are applicable in case of huf, while companies are taxed @ 30%.
3. Some deduction are allowed only to individual or huf.
4. TDS deduction @ lower rate in case of huf under some sections.
5. companies are regulated by companies act, so all the rules, provisions have to be followed by companies.
6. service tax payment is on monthly basis in case of company.
7. In case of some services, service tax is to be paid by service receiver. in most of the case, reverse charge mechanism is applicable, if service receiver is a body corporate.
8. ESIC And PF act to be followed by co.
9. MAT provision in case of company.
2. Slab rates are applicable in case of huf, while companies are taxed @ 30%.
3. Some deduction are allowed only to individual or huf.
4. TDS deduction @ lower rate in case of huf under some sections.
5. companies are regulated by companies act, so all the rules, provisions have to be followed by companies.
6. service tax payment is on monthly basis in case of company.
7. In case of some services, service tax is to be paid by service receiver. in most of the case, reverse charge mechanism is applicable, if service receiver is a body corporate.
8. ESIC And PF act to be followed by co.
9. MAT provision in case of company.
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