Annual Compliance for LLP Limited Liability Partnership
LLPs in India must file its Annual Return within 60 days from the end of close of financial year and Statement of Account & Solvency within 30 days from end of six months of close of financial year. Unlike Companies, LLPs mandatorily have to maintain their financial year, as April 1st to March 31st. Therefore, LLP annual return is due on May 30th and the Statement of Account & Solvency is due on October 30th of each financial year. However, in case the LLP was incorporated on or after 1st of October of a financial year, then the LLP can close its first financial year either on the coming or next 31st March, thereby filing its annual return after 18 months.
LLPs are separate legal entities; therefore, it is the responsibility of the Designated Partners to maintain proper book of accounts and file annual return with the MCA each financial year. LLPs are not required to audit its accounts unless the annual turnover exceeds Rs.40 lakhs or if the contribution exceeds Rs.25 lakhs. Therefore, LLP who do not have to get the accounts audited if it satisfies the above condition, making the annual filing process a simple and easy one. MyBizz Consultants can help file the Annual return for your LLP.
Every LLP shall comply with Annual Requirements of ROC and Income Tax and shall file:
1. Income Tax Return every year before 31st July ( 30th Sep if your turnover is More Than 1 Crore – Service Turnover More than 25 Lakhs)
2.File Form 8 – Statement of Account & Solvency every year within 30 days from the expiry of 6 months from the end of financial year( i.e. 30th October)
3. File Form 11- Annual Return every year within 60 days from close of Financial Year i.e by 30th May.
Procedure For Annual Compalince Fulfilment
1. Maintain Proper Books of Accounts.
2. Prepare and File Balance Sheet.
3. If your turnover is More than 40 Lakhs, get your accounts certified my CA
4. File Form 8 and Form 11 with ROC.
5. File Income Tax Returns with Income Tax Department.
Penalty for Non-Filing
1. 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.
2. 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.