Limited Liability Partnership (LLP) Compliance at a Glance

1. Filing of Annual Return

2. Filing of Income Tax Returns

3. Books of Account

1. Annual Return Filing:

In LLP, a person should file two types of MCA annual return each financial year. The two forms are Form 8 and Form 11.

Form 8

Form 8 consist of the statement of Account and Solvency. You should file Form 8 along with the fee, within 30 days from the end of six months of the financial year. Year ending for LLPs is 31st March of each year. Two designated partners must sign the form digitally. Further, it must be certified by a chartered accountant, auditor or the accountant of the company. Form 8 consists of information related to the statement of assets of the LLP and liabilities and statement of income and expenditure of the LLP.

There are two types in Form 8. They are:

• Part A – Statement of Solvency

• Part B – Statement of Accounts, Statement of Income & Expenditure

You will have to pay the penalty of Rs.100/day if you have not filed this form.

Form 11

Form 11 consist of annual return. The form should contain the complete details of all the partners, their contributions towards the company, etc. You should file Form 8 along with the fee, within 60 days of the financial year. Year ending for LLPs is 31st March of each year. Therefore, LLPs have to file the LLP Form 11 on or before 30th May every year.

Remember that you should pay the penalty if you don’t file LLP Annual Return on or before the due date.

2. Filing of Income-tax:

You have to file the Income-tax for your LLP. Whose turnover is more than Rs.50 lakhs in case of profession or INR 1 Cr in case of Business is required to get the books of account audited u/s 44AB of Income Tax Act, 1961 by a Chartered Accountant. The deadline to file the tax return for an LLP which is required to get his books verified & reviewed is 30th September. For LLPs where tax audit is not expected deadline, the due date for filing the tax is 31st July.

Limited Liability Partnerships (LLPs) which are required to file Form 3CEB (LLPs which have entered into international transactions) can do their tax filing by 30th November. LLPs should file their income tax return in Form ITR 5. The form could be submitted online via the income tax website with the help of the selected partner’s digital signature.

3. Books of Account:

All LLPs must maintain proper books of account on a cash basis or accrual basis. Each year, before 31st March, the report has to be adequately submitted when required. The accounts books have to be presented in the registered office when needed. In case of LLPs with a turnover of more than Rs.40 lakhs or capital of over Rs.25 lakhs, the accounts must be audited by a Chartered Accountant.

Any LLPs that does not obey the establishment of the Act can be punishable with a fine of minimum Rs.25,000 and to a maximum of Rs.5,00,000. Further, the designated partner could be punished with a penalty of Rs.10,000 and Rs.1 Lakh for non-acquiescence.