{"id":13866,"date":"2020-07-29T14:29:52","date_gmt":"2020-07-29T08:59:52","guid":{"rendered":"https:\/\/corpbiz.io\/learning\/?p=13866"},"modified":"2020-07-29T17:19:19","modified_gmt":"2020-07-29T11:49:19","slug":"annual-filings-for-limited-liability-partnership","status":"publish","type":"post","link":"https:\/\/corpbiz.io\/learning\/annual-filings-for-limited-liability-partnership\/","title":{"rendered":"A Complete Guide on Annual Filings for Limited Liability Partnership"},"content":{"rendered":"\n<p class=\"has-drop-cap\">The Limited Liability Partnership (LLP) must ensure the periodic filing of the tax return to avert penalties and ensure compliance with the law. Unlike a private limited company, Limited Liability Partnership (LLP) is less vulnerable to stringent compliances. However, it doesn&#8217;t give the implication that LLP has no obligation to address. In case of violation, LLP has to confront penalties that are significantly higher than that of a private limited company. In this blog, you will come across several aspects of Annual filings for Limited Liability Partnership. <\/p>\n\n\n\n<div class=\"wp-block-image\"><figure class=\"aligncenter\"><img decoding=\"async\" width=\"549\" height=\"383\" src=\"https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2020\/07\/image-135.png\" alt=\"LLP Registration\" class=\"wp-image-13867\" srcset=\"https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2020\/07\/image-135.png 549w, https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2020\/07\/image-135-300x209.png 300w\" sizes=\"(max-width: 549px) 100vw, 549px\" \/><\/figure><\/div>\n\n\n\n<p><strong>For instance &#8211;<\/strong> whenever a <a href=\"https:\/\/corpbiz.io\/company-registration\"><strong>private limited company<\/strong><\/a> caught in a felony of breaching tax provision, the penalty of Rs 1 lakh imposed on them. On the other hand, in the LLP, this penalty escalates up to 5 lakh. Therefore, LLP needs to remain on alert despite having less compliances to follow. <\/p>\n\n\n\n<ul><li>A <a href=\"https:\/\/corpbiz.io\/llp-registration\"><strong>registered LLP<\/strong><\/a> is deemed as a separate legal entity; therefore, the existing partners must ensure proper maintenance of account books. Such individuals are also accountable for filing an annual return with the <strong>MCA<\/strong><sup><a href=\"http:\/\/www.mca.gov.in\/\"><strong>[1]<\/strong><\/a><\/sup> annually.<\/li><\/ul>\n\n\n\n<ul><li>Limited\nLiability Partnerships can avert the provision of periodic auditing for their\naccount book if their turnover is well below the threshold limit, i.e., Rs 40\nlakh. This would eventually help them to confront fewer hassles while filing\nthe annual return. <\/li><\/ul>\n\n\n\n<ul><li>LLPs are\nliable to file their Statement of Account &amp; Solvency in a predetermined\ntimeframe i.e., within 30 days from the closure of 6 months of the fiscal year.\nFurthermore, LLP must file their annual return in the timespan of 60 days from\nthe end of the fiscal year.<\/li><\/ul>\n\n\n\n<p>Unlike other business models, LLPs are liable to maintain the fiscal year i.e., from April 1st to March 31st. Therefore, LLP is required to file the Statement of Account &amp; Solvency on or before October 30th and annual return on May 30th every fiscal year. LLPs cannot avert the filling of annual returns even if they are struggling to commence their business. Breaching such conditions could lead to hefty penalties. Let&#8217;s go ahead and explore more about Annual filings for Limited Liability Partnership.<\/p>\n\n\n\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_82_2 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title ez-toc-toggle\" style=\"cursor:pointer\">Page Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 eztoc-toggle-hide-by-default' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/corpbiz.io\/learning\/annual-filings-for-limited-liability-partnership\/#Statements_of_Accounts_and_Solvency\" >Statements of Accounts and Solvency<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/corpbiz.io\/learning\/annual-filings-for-limited-liability-partnership\/#Annual_Filings_for_Limited_Liability_Partnership\" >Annual Filings for Limited Liability Partnership<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/corpbiz.io\/learning\/annual-filings-for-limited-liability-partnership\/#Filing_and_Audit_prerequisites_for_LLP\" >Filing and Audit prerequisites for LLP<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/corpbiz.io\/learning\/annual-filings-for-limited-liability-partnership\/#Important_Points_to_Remember\" >Important Points to Remember<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/corpbiz.io\/learning\/annual-filings-for-limited-liability-partnership\/#Conclusion\" >Conclusion<\/a><\/li><\/ul><\/nav><\/div>\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Statements_of_Accounts_and_Solvency\"><\/span>Statements of Accounts and Solvency<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>LLPs operating under required compliance need\nto maintain their account book without exception and fill in data according to\nthe profit made. They are also responsible for sparing the financial data\naccordingly and use Form 8 for their submission. Keep in mind that Form 8 seeks\napproval of designated partners and practicing chartered accountant through a\nvalid signature. If the LLP fails to comply with said provisions, the penalty\nof INR 100\/day will be imposed on them. <\/p>\n\n\n\n<p>Form 8 is associated with the Statement of\nAccount and Solvency. It must represent the transactions undertaken during the\nfinancial year. Apart from this, the LLP should make the declaration regarding\nthe following:-<\/p>\n\n\n\n<ul><li>The turnover, whether it is below or above the\nthreshold limit. <\/li><li>Previously filed statement rendering the info\nrelated to satisfaction\/ modification until the current fiscal year.<\/li><li>Numbers of partners\/authorized representatives\naccountable for the preparation of accounts. <\/li><\/ul>\n\n\n\n<p class=\"text-left\"><b>Read our article<\/b>:<mark style=\"background: #fffd03 !important\"><a href=\"https:\/\/corpbiz.io\/learning\/limited-liability-companies-are-taxed-in-india\/\">Know how Limited Liability Companies are taxed in India!\n<\/a><\/mark><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Annual_Filings_for_Limited_Liability_Partnership\"><\/span>Annual Filings for Limited Liability Partnership<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Form 11 is a legal document that is used for the <a href=\"https:\/\/corpbiz.io\/learning\/procedure-of-filing-annual-return\/\"><strong>filling of annual returns<\/strong><\/a>. This form encompasses the details related to management affairs such as the number of the designated partners and their names. The LLPs have to file form 11 on or before May 30th every fiscal year.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Filing_and_Audit_prerequisites_for_LLP\"><\/span>Filing and Audit prerequisites for LLP <span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>As we already mentioned, LLPs earning or\ncontributing more than the threshold limit is liable to conduct a periodic\naudit of their account book under the supervision of practicing Chartered\nAccountants. Such LLPs must file their tax return on or before September 30th\nevery fiscal year.<\/p>\n\n\n\n<div class=\"shadow1\"><strong>Note:<\/strong> Every person engaged with business and\nmaintaining an account book needs to cater to auditing requirements if the\nturnover or total sale from the previous year surpasses the threshold limit i:e\n1 crore. <\/div>\n\n\n\n<p>To provide relaxation in this context, Section\n44B might undergo some changes to increase the threshold limit to Rs 5.\nHowever, such a threshold limit is only applicable when the taxpayer&#8217;s cash\nreceipt is limited to 5% of the aggregate payment. For LLPs where the deadline\nis not applicable to a tax audit, the tax filing should be done on or before\nJuly 31st. <\/p>\n\n\n\n<p>For LLPs undertaken domestic and international\ntransactions, they need to utilize Form 3CEB to file the taxes. LLPs who are\nrequired to avail such form needs to certify it by a practicing Chartered\nAccountant. The due date of filing such a form is November 30th. All the LLPs\nmust file their income tax via form ITR 5. The form is available at the income\ntax website. The LLC&#8217;s partner should have a digital signature at their\ndisposal while completing the filling requirement online. <\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Important_Points_to_Remember\"><\/span>Important Points to Remember<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<ul><li>Form 8 must be filed on or before October 30th. Failure to file attracts the fine of Rs.100 per day of delay.<\/li><li>If the LLP&#8217;s turnover surpasses Rs 40 lakh or a partner&#8217;s contribution exceeds Rs. 25 lakh, then the auditor shall approve Form 8 of the LLP<\/li><li>If the LLP fails to file Form 11 in a predetermined time frame suggested by law, then a fine of Rs 100\/day will be imposed for the delay.<\/li><li>Form 11 depicts the detail regarding the partner and all the contributions made. <\/li><li>\u00a0If the turnover stays at 5 crores and the contribution threshold does not surpass Rs 50 lakh, then the designated partner&#8217;s digital signatures will suffice. On the contrary, if the turnover value and contribution rushed through the threshold limit, LLPs partner needs to certify the form 11 by a Company Secretary. <\/li><\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Conclusion\"><\/span>Conclusion<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>LLP is one of those business models which discourages the stringent compliance and have nominal tax obligations. This is the reason why upcoming entrepreneurs prefer such a business model. There are some tax obligations that LLP needs to address precisely to avoid penalties. Hence, we can conclude that LLP is a conducive business model that lures low compliance and operates more seamlessly than other business models. If you are confronting some legal obstacle regarding Annual filings for Limited Liability Partnership, let the <a href=\"https:\/\/corpbiz.io\/\"><strong>CorpBiz<\/strong><\/a>&#8216;s expert help you out. <\/p>\n\n\n\n<p class=\"text-left\"><b>Read our article<\/b>:<mark style=\"background: #fffd03 !important\"><a href=\"https:\/\/corpbiz.io\/learning\/appointment-procedure-of-designated-partner-in-llp\/\">Appointment procedure of Designated Partner in LLP<\/a><\/mark><\/p>\n","protected":false},"excerpt":{"rendered":"<p>The Limited Liability Partnership (LLP) must ensure the periodic filing of the tax return to avert penalties and ensure compliance with the law. Unlike a private limited company, Limited Liability Partnership (LLP) is less vulnerable to stringent compliances. However, it doesn&#8217;t give the implication that LLP has no obligation to address. In case of violation, [&hellip;]<\/p>\n","protected":false},"author":22,"featured_media":13887,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":[],"categories":[155],"tags":[810],"acf":{"service_id":"3"},"authorName":"Pankaj Tyagi","authorImageUrl":"https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2022\/01\/MicrosoftTeams-image-42.jpg","authorDescription":"Pankaj has a diverse experience of writing research papers, blog, and articles during his college time. Earlier, he was working as a tax consultant in a financial firm, but his interest in writing drives him to pursue a career in the writing field.","postViews":4505,"readingTime":4,"_links":{"self":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/13866"}],"collection":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/users\/22"}],"replies":[{"embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/comments?post=13866"}],"version-history":[{"count":21,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/13866\/revisions"}],"predecessor-version":[{"id":13946,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/13866\/revisions\/13946"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/media\/13887"}],"wp:attachment":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/media?parent=13866"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/categories?post=13866"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/tags?post=13866"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}