Whether new pan required on conversion of firm into llp?

Others 13753 views 5 replies

Ankit

XYZ

24 Points Posted on 25 April 2015

Hello Everyone..

Whether a partnership firm is required to obtai new PAN on conversion into Limited Liability Partnership or it should continue to use old PAN no. and make an application for correction in PAN database viz. name and date of formation? Please note that under the Income Tax Act, firm and LLP are treated at par and defintion of firm includes LLP and thus as such there is no change in constitution of firm on conversion into LLP.

If new PAN is required to be obtained, then how the TDS credit in OLD PAN will be claimed by LLP? Further what should be done for income tax return filing for the broken period of a financial year?

Await response.. thanks in advance

- Ankit

Replies (5)

Quick Summary

The discussion focused on whether a partnership firm needs a new PAN after conversion into an LLP. One view held that a new PAN and separate tax returns are required, along with new registrations linked to PAN. Another view argued that since LLPs are treated similarly to firms under the Income Tax Act, the existing PAN could continue with updated details. The consensus remained divided, with practical compliance implications for tax returns, TDS credits, and statutory registrations.

Nikhil Kaushik

Fellow CA

86881 Points Posted on 26 April 2015

1. you will have to obtain a new PAN.

2. separate returns for the respective period should be filed.

CA Israil Ansari

Practice

25 Points Posted on 23 August 2016

1. When the ITR of partnership which is converted is filed ? At the time of surrender the PAN or after end of the Financial Year 2. One more question is that what about Service tax Registration no. The return of the existing firm which is being Converted ?

CA Vivek Soni

chartered accountant

31 Points Posted on 22 April 2017

1. you can file the income tax return after the end of the financial year

2. since service tax regn is based on PAN.... you have to obtain new service tax regn number and file seperate service tax return for seperate regn numbers obtained...

venugopal

CA CS

32 Points Posted on 21 August 2017

in my view, when firm is converted into LLP the firm name will change (say XYZ earlier will now become XYZ LLP) hence existing PAN can be continued and intimation to income tax dept is requried about the change of name. as the constitution under the income tax for firm and LLP will remain same (ie firm) no requirment of obtaining new PAN. this will ease the process while claiming credit under service tax or tax refunds if any.

Vancheeswar V R

22 Points Posted on 19 March 2023

LLP is an entiity with limited liability partnership registered under Companies Act 2013 but enjoying the benefits of a partnership under the LLP Act 2008.. Per se the conversion is pure and simple.

Assuming there is no change in the partners names or their sharing ratios, all is actually needed is just an intimation to the statutory authorities under whom the erstwhile partnership have been registered ie. IT, GST, ESI, PF, Aadhar,Factories Act etc.

This is my o