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Introduction:
Limited Liability Partnerships (LLP) are a form of business entity which allows individual partners to be free from the concept of unlimited liability of partners in a partnership firm. Now, as the government is increasing the compliances for companies, most of the people are choosing LLP form of business due to less complex compliances. But after incorporating LLP one has to be very vigilant and pro-active about the annual compliances of LLP as delay in filing involves per day penalty. Accordingly, we have covered the aspects of the filing of the annual forms by the LLPs under Limited Liability Partnership Act, 2008 and Income Tax Act.
ROC Annual Filing of LLP
Every LLP registered under the act have to compulsorily file annual accounts and annual return forms with ROC every year before the due date.
Filing of Annual Return of LLP (Form -11)
Every LLP registered under the act is required to file annual return in Form-11 pursuant to Section 35(1) of the LLP Act, 2008 within 60 days of end the respective financial year i.e. 30th May.
Form -11 is filed to report the details of the partners, their contribution and details of body corporate in which they hold directorship.
The form has to be digitally signed by two designated partners and shall be certified by the practicing professional, if required.
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.
Due date to file LLP Form-11 for FY 19-20 : 30th May, 2020. Further due to COVID-19, the government has extended the date till 30th September, 2020.
Filing of Annual Accounts of 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.
Due date to file LLP Form-8 for FY 19-20 : 30th October, 2020.
LLP Filing under Income Tax Act
Every LLP registered under the act has to comply with the Income tax Returns as well and file the same within due time. LLP are required to file Income Tax Return in ITR-5 within the time frame as applicable.
The turnover and contribution of the partner in LLP decides the criteria of audit of LLP. LLP whose turnover is more than 40 lakhs or capital contribution of partners is more than 25 lakhs, are required to gets their books audited by practicing Chartered Accountant.
The tax audit applicability for FY 19-20 is Rs. 1 crore and is proposed to be increased by FY 20-21 as per Budget 2020 to Rs. 5 crore if the taxpayer’s cash receipts are limited to 5% of the gross receipts or turnover, and if the taxpayer’s cash payments are limited to 5% of the aggregate payments.
Due date to file ITR of LLP for FY 19-20
In case of unaudited books of accounts: 31st July, 2020
In case of audited books of accounts: 30th September, 2020
Note:
If any LLP is incorporated after 30th Day of September of the financial year may end its financial year on the 31st March of the year next following year. For eg. Suppose a LLP is incorporated on 04th day of October, 2019 then such LLP can file the Form 8 and 11 after 31st Day of March, 2021. However, ITR of LLP has to be filed for the FY ended March, 2020.
