Compliances :- Limited Liability Partnerships
Limited Liability Partnerships (LLPs) in India are required to fulfill certain annual compliance requirements to maintain their legal and financial status. The compliance obligations for an LLP are governed by the Limited Liability Partnership Act, 2008, and the rules prescribed therein. Below are the key annual compliance requirements for an LLP in India:
Annual Return (Form 11): LLPs must file an annual return in Form 11 with the Registrar of Companies (RoC). The annual return must be filed within 60 days from the close of the financial year, i.e., by May 30 each year. Form 11 contains information about the partners, capital structure, details of designated partners, and changes (if any) during the financial year.
Statement of Accounts and Solvency (Form 8): LLPs are required to prepare and file a statement of accounts and solvency in Form 8 with the RoC. This statement provides information about the LLP's financial position, including its assets and liabilities, as well as the solvency of the LLP. Form 8 must be filed within 30 days from the end of six months of the financial year, i.e., by October 30 each year.
Income Tax Return (ITR): LLPs are required to file income tax returns annually. The due date for filing income tax returns for LLPs is generally July 31 each year, but it can be extended if the LLP is required to undergo tax audit.
Tax Audit (if applicable): If the LLP's turnover during the financial year exceeds the prescribed limit (currently INR 1 crore), or if the LLP's profits are lower than the prescribed limit (currently 8% of turnover), the LLP is required to get its accounts audited by a qualified chartered accountant. The tax audit report must be filed along with the income tax return.
GST Returns (if applicable): If the LLP is registered under the Goods and Services Tax (GST), it must file regular GST returns, such as GSTR-3B (monthly) and GSTR-9 (annual), in accordance with the GST law.
TDS (Tax Deducted at Source) Compliance (if applicable): If the LLP is making payments to vendors or service providers that are subject to TDS, it must deduct the TDS and deposit it with the government within the prescribed time. The LLP is also required to file TDS returns.
It's crucial for LLPs to adhere to these annual compliance requirements to avoid penalties and maintain their good standing with the regulatory authorities.