Annual Compliance for LLP Limited Liability Partnership
All the Limited Liability Partnership’s (LLP) Registered under the LLP Act 2008 are required to file the following returns mandatorily whether the LLP do business or not.
A. FILING WITH REGISTRAR OF LLP
1. Filing of Annual Return
An LLP is required to file the Annual Return with the Registrar of LLP (Form 11) within 60 days of closure of its financial year. An LLP has to close its financial year on every 31st March. So, the Annual Return is to be filed on or before 30th May every year.
2. Filing of Annual Accounts
Every LLP has to maintain books of accounts as per double entry system of accounting and prepare a Statement of Accounts and Solvency (Accounts) every year ending on 31st March. LLP has to file such Accounts to the Registrar of LLP (Form 8) within 30 days from the end of 6 months of such financial year. So, the filing of Accounts is to be filed on or before 30th October every year.
In case of an LLP whose annual turnover exceeds Rs.40 lakhs or whose contribution exceeds Rs.25 lakhs, shall be required to get its accounts audited by a Chartered Accountant.
B. INCOME TAX
As per Income Tax Act, LLP has to close its financial year as on 31st March every year and has to file the returns with Income Tax Department.
In case of LLP whose annual turnover is more than Rs.100 Lakhs, the accounts have to be audited as required under Income Tax Act as well.
A LLP have to file its Income tax Returns on or before the due dates as follows:
LLP whose accounts are not required to be audited under any Law
31st July of every year
LLP whose accounts are subject to Audit under any Law
30th September of every year or such other date as may be notified by the Income Tax authorities.
Procedure For Annual Compalince fulfilment
- Maintain Proper Books of Accounts.
- Prepare and File Balance Sheet
- If your turnover is More than 40 Lakhs, get your accounts certified my CA
- File Form 8 and Form 11 with ROC
- File Income Tax Returns with Income Tax Department
NEED FOR ANNUAL COMPLAINCE
- Late filing or non-filing of LLP Annual Return or Statement of Accounts and Solvency before the due date will attract a penalty of Rs. 100 for each day of default.
- Further, the LLP cannot be wound-up or closed without filing of the return and the penalty doesn't have a ceiling.
- Therefore, it is best to file the Annual Return and Statement of Accounts & Solvency of a LLP in time to avoid heavy penalty.