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Advance tax payment for LLP in 1st year of operation

19 September 2019

Dear Sir

Is it mandatory to pay advance tax payment in 1st year of business? If yes, how one should calculate it's advance tax payment?

Please help

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4 Replies

CA Mayur Todmal (Practicing CA) (7645 Points)
Replied 19 September 2019

if tax liability exceeds 10k you must pay advance tax.

Kapadia Pravin (17249 Points)
Replied 19 September 2019

@ Shraddha
Advance tax is calculated on the basis of estimated income for FY. If tax is less than 10000/- then no need to pay Advance Tax.

Shraddha Sinari (70 Points)
Replied 19 September 2019

@ CA Mayur Todmal & @ Kapadia Pravin Thank you.

Suresh Thiyagarajan (Student) (3986 Points)
Replied 19 September 2019

1. As per sec 207, advance tax is mandatory for LLP if its tax liability (after TDS ) exceeds Rs. 10,000 during the year.
2. Based on the estimated tax liability advance tax need to be paid for all the 4 quarters and due date and Percentage of advance tax would be as follows,
i) on or before 15th of June - 15%
ii) on or before 15th September - 45%
iii) on or before 15th of December - 75%
iv) on or before 15th of March - 100 %
3. It does not matter whether the firm is in its first year of operations, as long as tax liability in excess of Rs. 10,000 advance tax provision will be applicable to the assessee.
Please correct me if the above solution has an alternative view.