Description
Annual Compliance (Limited Liability Partnership)
A Limited Liability Partnership enjoys a separate status. Thus, an organization needs to maintain its active status by regularly filing with the Ministry of Corporate Affairs (MCA). Annual compliance filing is mandatory for any LLP, whether having a business or not.
Annual compliance for LLP requires filing two separate forms. One of which is for Annual Return, whereas another one is for Statement of Accounts and Solvency.
It is mandatory that LLP’s follow their financial year from 1st April to 31st March. The LLP annual compliance has to be met by each and every registered LLP even if there is no business activity. In fact, it has to be met even if the LLP has been closed down and whether or not a business bank account exists. LLP annual compliance has to be met on a mandatory basis, irrespective of these conditions.
LLPs must file income tax return using Form ITR 5. Form ITR 5 can be filed online through the income tax website using the digital signature of the designated partner. The deadline for LLP tax filing in India is July 31st if tax audit is not required. LLP whose turnover exceeded Rs. 40 Lakh or whose contribution exceeded Rs. 25 Lakh are required to get their accounts audited by a practising Chartered Accountant. The deadline for tax filing for LLP required to obtain audit is September 30th.
Penalty Provisions –
For MCA Filings:
As per the Limited Liability Partnership Act, 2008 filing of Form 8 and Form 11 is a mandatory requirement for every registered LLP. Non-compliance with the LLP annual compliance leads to a penalty. The penalty amount is. 100 per day for every form not filed. No upper ceiling is specified for such penalty amount.
For Income Tax Filings:
The penalty for defaulting on the filing of Income Tax returns on time is two-fold – Rs. 5000 is to be paid by defaulters who miss the filing due date but do so before 31st December of each year. Rs. 10000 is payable by LLPs that fail to stick to the extended deadline.
Thus, the major compliance for Limited Liability Partnership’s in India, are the following:
- Filing of Annual Return (LLP Form 11)
- Filing of Statement of Account & Solvency (LLP Form 8)
- Maintenance of records
- Other compliances
- Income Tax Compliances
- GST Returns
- TDS Returns
Frequently Asked Questions:-
– Whether Annual Filing is necessary for the LLPs?
LLP Annual Filing is necessary for every LLP since its incorporation. From the closure of its first financial year, the LLP must file both the forms within the prescribed time limit. The annual compliance is mandatory for every LLP, irrespective of the number of transaction, turnover or commercial activity undertaken.
– Why LLP ROC Compliance is required?
LLP is a corporate entity and is operated by legal rules and procedures as given in the LLP Act 2008. ROC is a Government office under the Ministry of Corporate affairs to look after the compliances of LLPs under its jurisdiction. Every LLP irrespective of its size has to file Annual returns giving details about its management and financial performance. Any delay in filing of returns attract penalty.
– Whether the Audit of Financial Statements is required for LLP RoC filing?
The audited books of accounts are necessary for the LLP falling under any of the below-mentioned criteria:
- If turnover of the LLP exceeds ₹ 40 Lakh
- Total contribution of Partners exceeds ₹ 25 Lakh.
– What is the statement of accounts and solvency?
The Statement of Accounts and Solvency is a mandatory filing that is required for all LLPs in India. The Statement of Accounts and Solvency contains a declaration on the state of solvency of the LLP by the designated partners and also information related to the statement of assets and liabilities and statement of income and expenditure of the LLP.
– When does the first Financial Year of the LLP end?
Due dates of LLP compliance are based on the closure of each financial year. Financial Year of every LLP must be closed on 31st March. However, period of financial year depends on the month of its incorporation:
- LLPs registered between 1st April and 30th September: The LLP must close its financial year on 31st March of next calendar year. Suppose LLP is registered on 1st May, 2018 , the same should close its financial year on 31st March, 2019.
- LLPs registered between 1st October and 31st March: The LLP has an option to choose the end of its financial year. For instance if the LLP is registered on 30th October, 2018 the same can close its financial year either on 31st March, 2019 or 31st March, 2020.
– What are the ROC Compliances applicable for an LLP?
- Filing of Annual returns via Form 11 & Form 8
- ROC Filing for Event based compliances
- Change in the Registered Office
- Appointment of Partners
- Changes in Designation of Partners
- Increase in Capital Contribution of LLP
- Change in Name and Main objects of the LLP
- Loan & Charge Management
- Changes in DIN
– What is the due date for filing LLP Annual Return?
The Annual return of an LLP is due within 60 days of close of financial year. Annual return of an LLP is due on or before May 30th of each financial year.
– What is the penalty for not filing LLP Annual Return?
Late filing or non-filing of LLP Annual Return or Statement of Accounts and Solvency before the due date will attract a penalty of Rs.100 for each day of default.
Process:-
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Mobile No – 8810627935, 8377941209
Email – [email protected]
Filing of Annual Return
The LLP to file an Annual Return to the Registrar of Companies within 60 days of closure of the financial year in eForm # 11
Statement of Accounts & Solvency
The LLP shall with in a period of 6 months from the end of every financial year prepare and file a Statement of Account and Solvency with the Registrar in eForm # 8.
Accounting & Book Keeping
All Proprietors are required to maintain accounts, ledgers and prepare financial statements at the end of each financial year.
GST Return Filing
GST Return Filing are mandatory returns for all LLP's who obtain GST Registration. GST Returns are filed on monthly, quarterly & annually basis.
Income Tax Return
Income tax return of a LLP must be filed irrespective of income, profit or loss. Hence, even dormant LLPs with no transactions are required to file income tax return each year.
TDS Return Filing
TDS Return is also required to be filed by the LLP's who have TAN Number and are also required to deduct tax at source as per TDS Rules.
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