In view of representation received by MCA from LLPs, the authority has decided to extend the timeline for filing Form 8 up to 31st Dec 2021 without imposing additional fees. The notification came as a relief for financially aggrieved LLPs who have served a tough time during the Covid phase. Further, this decision would enable these entities to skip additional fees in case of delayed filing of Form 8 LLP.
What is Form 8 under LLP Act?
Form 8 refers to a Statement of Account & Solvency. It must reflect the financial transactions that took place during the financial year & also financial standing during the year. Additionally, the LLP must also declare; the turnover, whether it is higher or less than Rs 40 lakh.
Why LLPs are required to file form-8 (the Statement of Account & Solvency)?
All registered LLPs are mandated to have their books of accounts in place & fill in data w.r.t the profit made, & other financial data concerning to business, & declare it Form-8, every year. Form-8 must enclose the signature of designated partners & validated & authenticated by the certified CA or CS. Those who do not file Form-8 in the given due date shall be liable to pay the penalty of Rs 100/day. Generally, the due date of filing form 8 on MCA’s portal is Oct 30 of every financial year.
What penalties are levied for non-filing of Form 8 in general?
A penalty of Rs. 100 per day would be imposed on the LLP responsible for the late filing of form 8 on the MCA’s portal.
What are some common inclusions of form 8 for LLP?
Form-8 generally referred to a Statement of Account and Solvency. It must reveal the financial transactions that occurred in the financial year & also the financial position during the year. The common details that an LLP is liable to declare in form 8 include;
- Gross turnover; whether it is above or lower than Rs 40 lakh;
- Liabilities (including unsecured loan and secured loan);
- Contribution received
- Investments details
Since Form-8 serves as a proclamation of Account & Solvency of an LLP, it must enclose the digital signature of the partner of the firm. The Form 8 filing is a legal compulsion for LLPs whose aggregate turnover is less than or equal to 40 lakh rupees or partner’s obligations is lower than or equal to Rs 25 lakhs
Form-8 acts as a legal proclamation of account and solvency which reveals the financial standing of the LLP for the given financial year. The covid phase has dented the ability of LLPs to address various legal obligations, including the filing of Form-8. In view of this, the Ministry of Corporate Affairs (MCA) has decided to extend the filing date for the same and also mitigate the requirement of furnishing the additional charges for late filing.
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