Effects of conversion into LLP of a partnership.

An LLP is a new entity with a new PAN:

• Conversion of a partnership firm into an LLP under Sec 55 / Second Schedule of the LLP Act creates a new body corporate. The LLP gets a new PAN and TAN, and must obtain new GST registration (or amend via transfer of business: ITC-02 for transferring credit), and update bank accounts, licences and contracts.

• Assets and liabilities vest in the LLP. Tax neutrality on conversion: there's no specific capital gains exemption for firm-to-LLP conversion (47(xiiib) is for company to LLP). Courts have held that firm-to-LLP conversion isn't a "transfer" (no change in beneficial ownership; e.g. Celerity Power ITAT 2018, and the Gujarat HC view).

• Stamp duty on vesting of property: varies by State. Several have exempted it.