LLP ANNUAL FILING
In India, it is compulsory to file the Annual Return for Limited Liability Partnerships within two months from the end of a financial year and Statement of Account & Solvency must be filed within one month from six months before the end of a financial year.
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Filing of Form 8
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LLP ANNUAL FILING
In India, it is compulsory to file the Annual Return for Limited Liability Partnerships within two months from the end of a financial year and Statement of Account & Solvency must be filed within one month from six months before the end of a financial year. The financial year between April 1st to March 31st of all Limited Liability Partnerships must be maintained. This implies that the due date for the annual return for LLPs is May 30th and the due date for Statement of Account & Solvency is October 30th of every financial year. Apart from the MCA annual return, it is compulsory for LLPs to also file the Income Tax Return in every financial year.
Account Maintenance for LLPs
Proper account records must be maintained by all Limited Liability Partnerships based on revenue and accrued funds after incorporation. As opposed to Private Limited Companies that are only expected to have a record of accounts based on accrued funds. LLPs can also maintain a record of account based on revenue. The Registered Office of the LLP will be responsible for maintaining the record of account for the LLP, which will comprise all the details of income and expenditure, liabilities and assets, inventories, statement of COGS and statement of end products. All LLPs are expected to have their financial statements prepared in not more than six months from filing for the RoC, at the end of a financial year.LLP Form 11
The form 11 also regarded as the annual return of the LLP is required to be filed online to RoC. The due date is usually two months before the end of a financial year. A financial year that begins on April 1st and ends on March 31st must be maintained by LLP, which implies that the due date for filing the Annual Return for LLP is May 30th of every financial year. Form 11 contains information on the total number of partners, the summary of the contributions of each partner, information about the corporate body of partners and a summary of the changes in partners. This form is expected to be filed by all LLPs two months before the end of a financial year with a predetermined charge. This implies that the due date for filing LLP is the 30th of May in every year.
LLP Form 8
Form 8 is also regarded as the Statement of Accounts & Solvency of an LLP, which must be filed in not more than 30 days from the close of six months of the end of a financial year. All Limited Liability partnerships in India must file the Statement of Accounts & Solvency. The Statement of Accounts and Solvency comprises of the statement on the state of solvency of the LLP by the appointed partners. It also contains information that relates to the LLP’s statement of assets and liabilities, as well as Statement of income and expenditure. The due date for filing the Form 8 is one month before the close of six months of the financial year with a predetermined amount. Two appointed partners must digitally sign this form as well as proper authentication from a chartered accountant or financial accountant. Contained in Form 8 is the Statement of Solvency, Statement of Income and Expenditure and Statement of Accounts.Audit for LLPs
Audit for LLPs It is compulsory for all Limited Liability Partnerships to audit their accounts through an accredited Chartered Accountant once the turnover in a year goes beyond Rs. 40 lakhs, or a contribution above Rs. 25 lakhs. A statement by partners of LLPs must be present in the account filed at the RoC to effect the recognition of Partners on their roles in agreeing to the requirements in relation to the preparation of the statement of accounts and financial statements to avail the exemption from an audit. Filing Income Tax Returns LLPs are required to use the Form ITR 5 to file an income tax return. It can be filed on the tax website with the digital signature of the appointed partner. In India, the income tax return must be filed on or before July 31st where a tax audit is not mandatory. For LLPs with a turnover that goes beyond RS 40 Lakh or a contribution above Rs 25 Lakhs, they are expected to ensure that their accounts are audited by a certified Chartered Accountant. LLPs are expected to submit their tax filing on or before September 30th in order to receive an audit.The implications of Non-Filing
- 1. Extra charges
An extra fee of Rs 100 daily will be added to any delay in filing the annual returns (Form 8 or Form11) until the return is filed. - 2. Charges for Non-Filing of Form 8
According to the Sec.34 (5) of the 2008 LLP Act, once there is a delay in the filing of the Annual Return, it will attract a fine of about Rs 25,000 or more and can go up to about Rs 5,000,000. All the partners appointed in the LLP shall also receive a fine of Rs 10,000 and more and can increase up to Rs 1,000,000. - 3. Punishment for Non-filing of Form 11
According to Sec.35 (3) of the 2008 LLP Act, once there is a delay in the filing of the Annual Return, the appointed partner of the LLP will be charged with a fine of Rs 10,000 or more that could increase to about Rs 1,000,000 together with an extra fee of Rs. 100 daily until the return is filed. - 4. Punishment for Non-filing of Income Tax Return
A delay in filing the Income Tax Return will prevent the LLP from moving the incurred Losses from the year forward and projected against the profit that would be generated in the subsequent year. Important Points All LLPs are mandated to file their returns whether or not any business transaction has been carried out. Any LLP that has not carried out any business transaction can file a NIL return. LLPs incorporated before September 30th, 2018 should file an annual return at the end of the financial year before March 31st, 2019. LLPs registered after October 1st, 2018 or before March 31st, 2019 will have to file for Form 8 and Form 11 in the year 2020.