LLP Annual Compliance and e-filing requirements

Last Updated On: Nov. 3, 2019, 3:48 a.m.
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Limited Liability Partnership (LLP) is required to file the returns periodically for maintaining compliance and escape heavy penalties under the LLP Act and rules for non-compliance. The interesting part is that LLP has to do a few compliances every year which is amazingly low as compared to the compliance requirements placed on the private limited companies. However, the fines & penalties for non-compliance by LLP are quite large in comparison to a Pvt ltd. The penalty for non-compliance costs a Private Limited company around INR 1 lakh, while it goes upto INR 5 lakh for an LLP.

 

Limited Liability Partnerships is a separate legal entity from the designated partners; hence, it is the duty of the elected designated partners for maintaining a proper book of accounts and filing an annual return with the Ministry of Corporate Affairs (MCA) annually.

Limited Liability Partnerships are not required to audit their books of account except where their annual turnover is more than INR 40 lakhs or if the contribution is more than INR 25 lakh. Hence, an LLP is not required to get their books of account audited if it fulfills the above-mentioned condition, making the process of annual filing simpler.

Limited Liability Partnerships are required to file their annual return on or before May 29th every year even if the LLP has not completed any business in that specific financial year. Some of the annual filings are mandatory whether the LLP has begun any business or not.

Limited Liability Partnerships are required to file their Statement of Account & Solvency on or before October 30th of every financial year even if the LLP has not completed any business in that specific financial year. Some of the annual filings are mandatory whether the LLP has begun any business or not.

 

DIN KYC via DIR 3 KYC or web KYC 

In case the Designated partners of LLP are the first time DIN holders on or after 01st April 2019, then they are required to get the DIR 3 KYC form filed with the professional certification. This need to be done within April 2020, penalty for the same is INR 5000 per DIN with DIN deactivation.

In case the Designated partners of LLP are already having DIN on or before 31st March 2019, then they are required to get the Online DIR 3 KYC completed within April 2020, penalty for the same is INR 5000 per DIN with DIN deactivation.

Filing Annual Return

Annual Returns are to be filed in the prescribed Form-11. This form is considered as the summary of management affairs of LLP, like numbers of partners along with their names. Moreover, form 11 has to be filed by 29th May every year.

Statements of Accounts and Solvency

All enrolled LLPs are required to have their books of accounts in place and fill in data with respect to the profit made, and other financial data in regards to business, and submit it in Form 8, every year. Form 8 must be attested by the signatures of the designated partners and should also be certified by a practicing chartered accountant or a practicing company secretary or a practicing cost accountant. Failing to file, the statement of accounts & solvency report within the specified due date will lead to a fine of INR 100 per day.
The due date to file form 8 for the financial year 2019-20 is October 30, 2020.

 

Filing and Audit requirement under the Income Tax Act

As discussed earlier, Limited Liability Partnerships whose turnover is more than INR 40 lakh or whose contribution has exceeded INR 25 Lakh have to get the books of account audited by practicing Chartered Accountants. The deadline to file the tax return for an LLP which is required to get his books audited is September 30th.

For LLPs where tax audit is not required deadline, the due date for tax filing is July 31st.


For LLPs which have entered into any international transactions with associated enterprises or have undertaken specified Domestic Transactions, they need to file Form 3CEB. This form should be certified by a practicing Chartered Accountant. Limited Liability Partnerships which are required to file this Form can do their tax filing by 30th November.
 

LLPs should file their income tax returns in Form ITR 5. This form could be filed online via the income tax website with the help of the designated partner’s digital signature.

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