Extension of Due dates for LLP Form 8

Last Updated On: Nov. 10, 2020, 10:39 p.m.
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Extension of Due dates of Filing LLP form 8

Introduction:

MCA has issued an important clarification to rectify an Anomaly in extension of LLP Settlement Scheme, 2020.

All Limited Liability Partnership(LLP’s) registered under Limited Liability Act,2008 are mandatorily required to file annually two statutory forms i.e Form 8 and Form 11.

The Ministry of Corporate Affairs (MCA) on 9.11.2020, has issued an Important General Circular No. 37/2020, in continuation of its earlier General Circular No. 13/2020 dated 30.03.2020 and General Circular No. 31/2020 dated 28.09.2020, regarding the Extension of LLP Settlement Scheme, 2020.

The said General Circular No. 37/2020 dated 9.11.2020, is important and significant because it rectifies an anomaly arising out of its earlier Circular No. 13/2020 dated 30.3.2020.

It may be recollected that MCA vide its Circular No. 13/2020 dated 30.3.2020, has modified the provisions related to LLP Settlement Scheme, 2020, to allow a one-time condonation of delay in filing statutory forms/documents by the LLPs, with the Registrar.

 

LLP Filing Under Income Tax:

  • Every LLP registered under the act is required to prepare books of accounts file financials in Form-8 pursuant to Section 34(2) of the LLP Act, 2008 within 30 days of end six months of the closure of the financial year i.e. 30th October.
  • Form 8 is filed to report the statement of solvency and statement of accounts and Income and Expenditure for the year and disclosure under MSMED Act, 2006.
  • The form has to be digitally signed by two designated partners and shall be certified by the practicing professional.
  • In case of non-filing of the form before due date, additional fees of Rs. 100 per day is levied till the date of filing.

 

Filing of Accounts of LLP Forms (Form 8 and Form 11):

LLP Form 11:

 Form 11 is an annual return has to be submitted within 60days of the closure of the financial year i.e 30th May of the subsequent financial year.

LLP Form 8:

Every LLP registered under the act is required to prepare books of accounts file financials in Form-8 pursuant to Section 34(2) of the LLP Act, 2008 within 30 days of end six months of the closure of the financial year i.e. 30th October.

Form -8 is filed to report the statement of solvency and statement of accounts and Income and Expenditure for the year and disclosure under MSMED Act, 2006.

The form has to be digitally signed by two designated partners and shall be certified by the practicing professional.

In case of non-filing of the form before due date, additional fees of Rs. 100 per day is levied till the date of filing.

 

Extension of Due date:

LLP Settlement Scheme, 2020, any Defaulting LLP was permitted to file its belated statutory forms/documents, which were due for filing till 31.08.2020,   in accordance with the provisions of this Scheme.

Earlier the last date for availing the benefit of this Scheme was 30.9.2020. This last date for availing the benefit of the Scheme has been further extended to 31.12.2020 vide MCA General Circular No. 31/2020 dated 28.09.2020.

However, no corresponding extension was being made in the cut-off date for the applicability of the LLP Settlement Scheme, 2020 i.e. the due date uptill which the statutory forms/documents were originally required to be filed, in these two Circulars and it remained 31.8.2020 only.

Therefore, this omission of extension in the cut-off date, was resulting in an anomaly wherein the defaulting LLPs were being able to file belatedly their statutory forms/documents like Form 8, Form 11, which were due for filing on or before 31.8.2020, uptill 31.12.2020. However, similar relaxation was not available in respect of the statutory forms/documents including the Statement of Account and Solvency in Form 8, which were due for filing after 31.8.2020.

So, this anomaly was resulting in some absurd conclusions, wherein the defaulting LLPs were being able to file their Form 8 of the FY 2018-19 and earlier years, belatedly till 31.12.2020, but were not able to avail the similar extension in filing of Form 8, in respect of a later FY 2019-20, as the due date of filing Form 8 for the FY 2019-20 is 31.10.2020, which falls after 31.8.2020.

Taking cognizance of this anomaly, now MCA has extended the cut-off date for applicability of the LLP Settlement Scheme, 2020, from 31.8.2020 to 30.11.2020. Accordingly, now the defaulting LLPs will be able to file their belated statutory forms/documents including Form 8 & 11, which were due for filing on or before 30.11.2020, by 31.12.2020.

So, now the LLPs can file their Form 8 & 11 for the FY 2019-20 also by 31.12.2020.

Further, the same MCA General Circular No. 37/2020 dated 9.11.2020, has also provided that if a Statement of Account & Solvency i.e. Form 8, for the FY 2019-20, has been signed beyond the period of six months from the end of the financial year but not later than 30.11.2020, the same shall not be deemed as non-compliance.

It means that the original due date of filing Form 8 by LLPs for the FY 2019-20 has been extended from 31.10.2020 to 30.11.2020, and so the LLPs filing their Form 8 for the FY 2019-20 by 30.11.2020 will not be considered as defaulting LLPs.

However, while filing their Form 8 for the F.Y 2019-20 by 30-11-2020,if the LLPs commit default in filing ,then such LLPs can avail the benefit of LLP Settlement Scheme, 2020, to belatedly file their Form 8 for the FY 2019-20 by 31.12.2020.

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