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Tax difference between partnership firm and Pvt limited

Ajay Gupta (PRACTICING CHARTERED ACCOUNTANT) (196 Points)

29 October 2019

One of our proposed client is planning to start one hospital.. Which is more beneficial structure from tax perspective - Pvt. Company or partnership?

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4 Replies

RAJA P M ("Do the Right Thing...!!!") (127167 Points)
Replied 30 October 2019

In current scenario Partnership firm is better than Pvt Ltd...

subhagan sreerangam (7039 Points)
Replied 30 October 2019

Partnership firm is better than Pvt Ltd in always.

Ajay Gupta (PRACTICING CHARTERED ACCOUNTANT) (196 Points)
Replied 30 October 2019

Can you please support your answer with some sound rationale?

Kapadia Pravin (17249 Points)
Replied 30 October 2019

In my view Private Limited is preferrable.

Bcoz taxation wise now the rates have been reduced.

And shares are transferrable easily without affecting the Company.

Exit of any shareholder or admitting of any is far far easier.

The lable corporate company carries its own weightage and image building.