Companies LawLegal Updates

LLP Compliance Calendar

Drafted by CS Lalit Rajput

INTRODUCTION 

This article covers the Mandatory Compliances to be followed by a LLP under Registrar of Companies, Ministry of Corporate Affairs, mentioned under LLP Act, 2008 and Income Tax Act, 1961 including Tax audit provisions.  Some key points are also given regarding LLP :- 

  • Definition(s) 

Define Limited Liability Partnership (LLP) u/s 2(n) of LLP Act 2008:

“Limited Liability Partnership” means a partnership formed and registered under Limited Liability Partnership Act, 2008.

Define Foreign Limited Liability Partnership (FLLP) u/s 2(m) of LLP Act 2008:

“Foreign Limited Liability Partnership” means a limited liability partnership formed,

incorporated or registered outside India which establishes a place of business within India;

In general terms, LLP is a Corporate entity and governed by the laws and regulation prescribed by the Limited Liability Partnership Act, 2008 (LLP Act, 2008).

“Any two or more persons associating for carrying on a lawful business with a view to profit may set up an LLP.”

  • Regulatory Authority:

Registrar of Companies (ROC), Ministry of Corporate Affairs (MCA)

  • Mandatory Compliances for an LLP

Registered LLPs  with the Ministry of Corporate Affairs (MCA) needs to file the following mandatory compliance requirements :

I. Filing of Annual Return – LLP Form-11

II. Filing Statement of Account & Solvency – LLP Form-8

(Statement of Statement of the Accounts/Financial Statements)

III. Filing of Income Tax Returns

  • Brief Overview of the Mandatory Compliances:

1. Filing LLP Annual Return

Annual Return or Form 11 is a summary of an LLP’s Partners and indication of change in the management. 

Every LLP is required to file Annual Return in Form 11 to the Registrar within 60 days of closer of financial year i.e. has to be filed on or before 30th May every year.

2. Filing of Statement of Account & Solvency

(Filing of Annual Accounts/ Statement of Accounts/ Financial Statements/ P&L & Balance Sheet)

a) LLP must maintain proper books of account. The accounts may be on cash basis or accrual basis.

b) Statement of Solvency (Accounts) needs to be prepared every year ending on 31st March.

c) LLP Form – 8 should be filed with the Registrar of Companies on or before 30th October every year.

d) It should be noted that LLPs / FLLPs whose annual turnover exceeds Rs. 40 lakh or partner’s obligation of contribution exceeds Rs. 25 lakh are required to get their accounts audited by auditor of the LLP/ FLLP mandatorily.

Tabular classification of Mandatory ROC Return of LLP

Sl. No.

E-Form

Due Date

1.

Annual Return (Form 11)

within 60 days of closer of financial year

(For F.Y.  2018-19 due date is

30-05-2019)

2.

Statement of Account & Solvency (Form 8)

on or before 30th October every year

(For F.Y.  2018-19 due date is

30-10-2019)

3.  Filing of Income Tax Return

LLP can file its return of income in ITR 5. it is mandatory for LLP to file return of income electronically under digital signature if its accounts are required to be audited under section 44AB.

Sl. No.

Income Tax Return Particulars

Due Date

1.

In case Audit is not required

(Those LLPs whose annual turnover does not exceeds Rs. 40 lakh or partner’s obligation of contribution exceeds Rs. 25 lakh are required to file their Income Tax. They are not required to get their accounts audited by their Auditor)

31st July of every year

2.

In Case Audit is required

(Those LLPs whose annual turnover exceeds Rs. 40 lakh or partner’s obligation of contribution exceeds Rs. 25 lakh are required to file their Income Tax. They are required to get their books audited under the Income Tax Act.)

30th September of every year

3.

LLPs Involved in International Transaction

(LLPs that entered into an international transaction with associated enterprises or undertook certain Specified Domestic Transactions are required to file Form 3CEB. Form 3CEB must be certified by a Chartered Accountant.)

30th November of every year

Tax Structure of LLP for F.Y. 2018-19 & A. Y. 2019-20

  • The Income Tax rate for LLPs is 30% (flat):

a) Surcharge: The amount of income-tax shall be increased by a surcharge at the rate of 12% of such tax, where total income exceeds Rs. 1 crore rupees. However, the surcharge shall be subject to marginal relief (where income exceeds Ra. 1 crore rupees, the total amount payable as income-tax and surcharge shall not exceed total amount payable as income-tax on total income of Rs. 1 crore rupees by more than the amount of income that exceeds Rs. 1 crore rupees).

 

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