Annual Compliance For LLP
Limited Liability Partnerships (LLP) are emerging ever since the introduction of the Companies Act, 2013 as it is a form of business entity, which allows individual partners to be free from the concept of joint liability of partners in a partnership firm. Now, as the government is increasing the compliances and disclosures for a Company form of structure, most of the people are choosing LLP form of business due to its simple and less complex compliances. But one has to be very vigilant and pro-active about the compliances of LLP as most of its Form involves per day penalty.
Annual Compliances for LLP
Every LLP registered under the provisions of the LLP Act, 2008 is required to file the following forms on the Income Tax Portal/MCA Portal:
1. Annual Return of LLP- Form 11
Pursuant to Section 35(1) of the LLP Act, 2008 every LLP is required to file Form 11 with the Registrar of Companies within 60 days of the closing of the Financial Year i.e. by 30th May, 2019.
- Details
Form 11 of LLP contains Number and details of Designated Partners/Partners, Total Contribution received by all Partners and Details of Body Corporate.
- Attachments
Details of Companies/LLPs in which the Designated Partner/Partners is a Director/partner To be digitally signed by the Designated Partner and certified by a practicing professional.
- Penalty if not filled with in time
Penalty of Rs. 100/- per day in case of non-filing. Other penal provisions are also there.
2. Statement of Account and Solvency – Form 8
Pursuant to Section 34(2) of the LLP Act, 2008 every LLP shall file Form 8 regarding statement of Account and Solvency, within a period of 30 days from the end of six months of the closure of the financial year and accordingly, the same has to be file by 30th October, 2019.
- Details
Form 8 has contains Statement of Solvency, Statement of Accounts and Statement of Income & Expenditure. There is no prescribed format for preparation of financial returns of the LLP and therefore, the accounts are prepared in the format provided in Form 8.
- Attachments
Audited Financial Statements (in case applicable), Disclosure under MSME Development Act, 2006 and Statement of Contingent Liability, if exists
The Form has to be digitally signed by both the Designated partners, Auditor (in case any) and further should be certified by a practicing professional.
- Penalty if not filled with in time
Penalty of Rs. 100/- per day in case of non-filing. Other penal provisions are also there.
3. Filing of Income Tax Return by LLP- ITR 5?
Every registered LLP shall file Income Tax Return in ITR-5 within the following specified time period:
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PARTICULARS |
DUE DATE |
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Every registered LLP with an annual turnover of less than Rs. 40 lakhs in the previous financial year or LLPs where partner’s obligation of contribution is less than Rs. 25 lakh. (not required to get their accounts audited) |
On or before 31st July |
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Every registered LLP having a turnover of more than Rs. 40 lakhs and/or partner’s capital contribution of more than Rs.25 lakhs. (required to get their accounts audited by a Practising Chartered Accountant) |
On or before 30th September. |