The first thought which come in mind when we hear the word compliance is burden but in case of LLP it is not. The main feature why LLP attract individual is its less compliance as compare to any kind of companies.
All LLPs registered with the Ministry of Corporate Affairs need to file Annual Returns and Statement of Accounts for every Financial Year. It is mandatory for a LLP to file a return irrespective of whether it has done any business. There are three mandatory compliance requirements to be followed by LLPs. Filing of Annual Return Filing of Statement of the Accounts or Financial Statements Filing of Income Tax Returns.
Limited Liability Partnerships (LLP) is a relatively new type of corporate entity that is a hybrid between a company and a partnership firm. LLPs registered in India must file their income tax return and MCA annual return each year irrespective of business activity, turnover or profits. In this article, we look at the important due dates for LLP annual return filing and tax return filing.
Form 11 Due Date
All LLP is required to file Annual Return in Form 11 to the Registrar of Companies (ROC) within 60 days from the closure of financial year ie. before 30th May of each year. Form 11 contains details of the number of partners, total number of partners, total contribution received by all partners, details of body corporate as partners and summary of partners.
Income Tax Return
LLPs must file income tax return in form ITR-5. The due date for filing income tax return for a LLP would change based on the amount of turnover the LLP recorded in the previous year and the amount of capital contribution. LLPs with an annual turnover of less than Rs.40 lakhs in the previous financial year or LLPs where partner’s obligation of contribution is less Rs. 25 lakh must file income tax return on or before 31st July.
The LLP whose annual turnover exceeds Rs. 40 lakhs or whose contribution exceeds Rs. 25 lakhs. They are required to get their accounts audited by a qualified Chartered Accountant.LLPs who require tax audit must file their income tax return on or before 30th September for the relevant assessment year.
Form 8 Due Date
Every LLP is required to maintain the Books of Accounts as per Double Entry System. It also has to prepare a Statement of Solvency (Accounts) every year ending on 31st March. All LLPs registered in India must file Form 8 with the Ministry of Corporate Affairs (MCA) before 30th October of each year. Form 8 is also known as Statement of Account & Solvency. In Form 8, the LLP must provide details of financial transactions undertaken during the financial year and position at the end of financial year. Hence, to file LLP form 8, the company must have prepared financial statements for the financial year to file the various data and information required in Form 8.
Penalty for Late Filing LLP MCA or Income Tax Return
LLPs are subject to a stringent penalty for late filing of MCA or Income Tax returns. Failure to file Form 8 or Form 11 can lead to a penalty of Rs.100 per day per form. Hence, if a LLP fails to file Form 11, it would lead to a penalty of Rs.100 per day and if a LLP fails to file Form 8, it would lead to a penalty of Rs.200 per day.
In addition to the MCA penalty, LLPs would also be subject to penalty under the Income Tax Act for not filing returns on time. From the Assessment Year 2018-19 (1st April 2018), failure to file income tax return also incurs a penalty of Rs.5000 if the return due on July 31st if filed between August and December of the same assessment year. If an income tax return due on 31st July is filed after 31 December of the same assessment year, then a mandatory penalty of Rs.10,000 will be levied.
A LLP having GST registration must also file GST returns in addition to MCA and income tax return. The due dates for a LLP to file GST returns is the 20th of each month for GSTR 3B returns.
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 and to file the GST Return on time.
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