{"id":6254,"date":"2020-04-07T11:48:41","date_gmt":"2020-04-07T06:18:41","guid":{"rendered":"https:\/\/corpbiz.io\/learning\/?p=6254"},"modified":"2020-04-07T11:53:06","modified_gmt":"2020-04-07T06:23:06","slug":"modified-llp-settlement-scheme-2020","status":"publish","type":"post","link":"https:\/\/corpbiz.io\/learning\/modified-llp-settlement-scheme-2020\/","title":{"rendered":"Modified LLP Settlement Scheme, 2020"},"content":{"rendered":"\n<p class=\"has-drop-cap\">In continuation of the Ministry&#8217;s General Circular No. 06\/2020 dated 4<sup>th<\/sup> march 2020, it has brought specific modification with the existing <a href=\"https:\/\/corpbiz.io\/learning\/llp-settlement-scheme-2020-for-defaulting-llps\/\"><strong><em>LLP Settlement Scheme, 2020<\/em><\/strong><\/a>, with Circular No. 13\/2020 dated March 30, 2020, <strong>which will be implemented by the Ministry with effect from April 1, 2020.<\/strong><\/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\/modified-llp-settlement-scheme-2020\/#What_is_the_Purpose_of_this_Scheme\" >What is the Purpose of this Scheme?<\/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\/modified-llp-settlement-scheme-2020\/#Comparative_Analysis_of_Modified_LLP_Settlement_Scheme_2020_and_LLP_Settlement_Scheme_2020\" >Comparative Analysis of Modified LLP Settlement\nScheme, 2020 and LLP Settlement Scheme, 2020:<\/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\/modified-llp-settlement-scheme-2020\/#Manner_of_Payment_of_fees_on_the_filing_of_belated_documents_for_seeking_immunity_under_this_scheme\" >Manner of Payment of fees on the filing of belated documents for seeking immunity under this scheme:<\/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\/modified-llp-settlement-scheme-2020\/#Immunity_from_prosecution_with_respect_of_Documents_filed_under_this_scheme\" >Immunity from prosecution with respect of Documents filed under this scheme:<\/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\/modified-llp-settlement-scheme-2020\/#What_are_the_Consequences_if_LLPs_dont_avail_Modified_%E2%80%93_LLP_Settlement_Scheme_2020\" >What are the Consequences if LLPs don&#8217;t avail Modified &#8211; LLP Settlement Scheme, 2020?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/corpbiz.io\/learning\/modified-llp-settlement-scheme-2020\/#Take_Away\" >Take Away<\/a><\/li><\/ul><\/nav><\/div>\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"What_is_the_Purpose_of_this_Scheme\"><\/span>What is the Purpose of this Scheme?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<ul><li>To support Limited Liability Partnerships (LLPs)\nregistered in India and also to focus upon taking necessary measures to address\nthe COVID-19 threat and to reduce the compliance burden.<\/li><li>The pandemic of COVID-19 has created threat to\nthe world economy. In order to boost the economy and provide relief to\ncorporates, the Government has introduced this scheme.<\/li><li>To facilitate the LLP\u2019s registered in India to\nmake a fresh start.<\/li><li>One time opportunity for the defaulting LLP\u2019s\nand enable to file belated returns with normal ROC fees applicable.<\/li><\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Comparative_Analysis_of_Modified_LLP_Settlement_Scheme_2020_and_LLP_Settlement_Scheme_2020\"><\/span><strong>Comparative Analysis of Modified LLP Settlement\nScheme, 2020 and LLP Settlement Scheme, 2020:<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Let\u2019s have a look for the Comparative analysis for LLP settlement Scheme and, 2020 and modified LLP Settlement Scheme, 2020:<\/p>\n\n\n\n<table class=\"table table-bordered\"><tbody><tr><td>\n  <strong>S. No<\/strong>\n  <\/td><td>\n  <strong>Particulars<\/strong>\n  <\/td><td>\n  <strong>&nbsp;LLP Modified Settlement, 2020 <\/strong>\n  <\/td><td>\n  <strong>LLP\n  Settlement Scheme, 2020<\/strong>\n  <\/td><\/tr><tr><td>\n  1.\n  <\/td><td>\n  Circular No\n  <\/td><td>\n  <strong>12\/2020\n  dated March 30, 2020<\/strong>\n  <\/td><td>\n  06\/2020 dated March 4, 2020\n  <\/td><\/tr><tr><td>\n  2.\n  <\/td><td>\n  Time Period for the Scheme\n  <\/td><td>\n  <strong>April 1,\n  2020, to September 30, 2020<\/strong>\n  <\/td><td>\n  March 16, 2020, to June 13, 2020\n  <\/td><\/tr><tr><td>\n  3.\n  <\/td><td>\n  Period of days\n  <\/td><td>\n  <strong>6 months<\/strong>\n  &nbsp;\n  <\/td><td>\n  90 days\n  <\/td><\/tr><tr><td>\n  4.\n  <\/td><td>\n  Applicability\n  <\/td><td>\n  Any <strong>Defaulting\n  LLPs<\/strong> can file belated documents\/specified forms, which were due for\n  filing up to August 31, 2020, by the provisions under this scheme \n  &nbsp;\n  <\/td><td>\n  Any Defaulting LLPs can file belated\n  documents\/specified forms, which were due for filing up to October 31, 2019,\n  by the provisions under this Scheme \n  <\/td><\/tr><tr><td>\n  5.\n  <\/td><td>\n  Advantages\n  <\/td><td>\n  Such LLPs need to <strong>pay only normal fees<\/strong>, as applicable.\n  &nbsp;\n  <\/td><td>\n  Such LLPs need to pay normal fees with additional\n  fees. \n  <\/td><\/tr><tr><td>\n  6\n  <\/td><td>\n  Additional Fees\n  <\/td><td>\n  <strong>No\n  additional fees<\/strong> payable, pay only normal fees.\n  <\/td><td>\n  Normal fees, and additionally Rs fee payable 10\/-\n  per day of delay, subject with Maximum of Rs. 5000\/- per document.\n  <\/td><\/tr><tr><td>\n  7.\n  <\/td><td>\n  Scheme not applicable\n  <\/td><td>\n  Modified LLP, Scheme is <strong>not applicable for the LLPs, which has already made an application in\n  Form 24<\/strong> to the Registrar, <strong>for\n  strike off<\/strong> its name from the register as per the provisions with Rule\n  37(1) of the LLP Rules, 2009.\n  &nbsp;\n  <\/td><td>\n  This scheme is not applicable for the LLPs, which\n  has already made an application in Form 24 to the Registrar, for strike off\n  its name from the register as per the provisions with Rule 37(1) of the LLP\n  Rules, 2009.\n  &nbsp;\n  <\/td><\/tr><tr><td>\n  8\n  <\/td><td>\n  Applicable Forms which can be filed under this\n  scheme\n  <\/td><td>\n  <strong>Any form,<\/strong>\n  which is required to be file under the LLP Act, 2008 with the Ministry of\n  Corporate Affairs (MCA 21), and Rules made thereunder. \n  <\/td><td>\n  The scheme was applicable with filing only with the\n  following Specified Forms:\n  &nbsp;\n  <strong>Form-3<\/strong>\n  which relates with Information for limited liability partnership agreement\n  and changes if any;\n  <strong>Form-4<\/strong>\n  which relates with Notice of appointment, cessation of partner\/designated partner,\n  change in name\/address\/designation for a designated partner or partner and\n  for consent to become a partner\/designated partner; \n  <strong>Form-8<\/strong>\n  which relates with Statement of Account and Solvency\n  <strong>Form-11<\/strong>\n  which relates with Annual Return of LLP ( Limited Liability Partnership)\n  *Note- No other forms can be filed under this\n  scheme.\n  <\/td><\/tr><\/tbody><\/table>\n\n\n\n<p><strong>Below are some Definitions which should be\ntaken on a note with this regards;&nbsp; <\/strong><\/p>\n\n\n\n<ul><li><strong>Defaulting LLP:<\/strong> It means <a href=\"https:\/\/corpbiz.io\/llp-registration\"><strong><em>LLP registered<\/em><\/strong><\/a> under the Limited Liability Partnership Act, 2008 which has made default in filing of documents within due date(s) specified under the LLP Act, 2008 and rules made thereunder; <\/li><li><strong>Belated Documents<\/strong>: It means all the documents or forms which are required to be filed under MCA-21 under the provisions of the <strong><em>Limited Liability Act, 2008<\/em><\/strong><sup><a href=\"http:\/\/www.mca.gov.in\/MinistryV2\/llpact.html\"><strong><em>[1]<\/em><\/strong><\/a><\/sup> and rules made there under;<\/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\/key-highlights-of-39th-gst-council-meeting\/\">Key Highlights of 39th GST Council Meeting<\/a><\/mark><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Manner_of_Payment_of_fees_on_the_filing_of_belated_documents_for_seeking_immunity_under_this_scheme\"><\/span>Manner of Payment of fees on the filing of belated documents for seeking immunity under this scheme:<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>The Defaulting\nLLPs may themselves avail this Scheme for Filing of Documents with the\nRegistrar which were not filed on time, and fees will be payable as applicable<\/p>\n\n\n\n<p>No additional\nfees shall be enforceable under this scheme.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Immunity_from_prosecution_with_respect_of_Documents_filed_under_this_scheme\"><\/span>Immunity from prosecution with respect of Documents filed under this scheme:<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>The Defaulting\nLLPs which have submitted belated documents\/forms till September 30, 2020, as\nspecified under this scheme and have made good their defaults, such LLPs will\nnot be subjected to prosecution by the Registrar for such defaults.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"What_are_the_Consequences_if_LLPs_dont_avail_Modified_%E2%80%93_LLP_Settlement_Scheme_2020\"><\/span>What are the Consequences if LLPs don&#8217;t avail Modified &#8211; LLP Settlement Scheme, 2020?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>If LLPs don&#8217;t\navail of this scheme, then the Registrar will issue directions to take strict\nactions against the LLPs who did not file their due forms till September 30,\n2020. The consequences may be:<\/p>\n\n\n\n<ul><li>The normal fee would be payable on the forms;<\/li><li>An additional fee of Rs. 100 per day of default\nwill be applicable;<\/li><li>Action for Strike Off by the Registrar will be\ngiven;<\/li><li>Prosecution for the Partners &amp; Designated\nPartners etc.<\/li><\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Take_Away\"><\/span>Take Away<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Modified LLP Settlement Scheme will be one-time relaxation for the defaulting LLPs so that they can rectify their mistake by availing such scheme. It will provide a big relief for such LLPs who have not filed forms with MCA within due dates, which incurred heavy penalties and were about to wound up. After availing of this scheme, they can re-start their business. Also, DIN holders marked was deactivated due to non-filing of DIR-3 KYC or DIR-3 KYC web form, can file such form without any late fees of Rs. 5000\/-. This scheme will also save from heavy penalties by filing Form DIR-3 KYC.<\/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\/mca-eases-norms-for-companies-and-llps-amid-coronavirus-outbreak\/\">MCA Eases Norms for Companies and LLPs amid Coronavirus<\/a><\/mark><\/p>\n","protected":false},"excerpt":{"rendered":"<p>In continuation of the Ministry&#8217;s General Circular No. 06\/2020 dated 4th march 2020, it has brought specific modification with the existing LLP Settlement Scheme, 2020, with Circular No. 13\/2020 dated March 30, 2020, which will be implemented by the Ministry with effect from April 1, 2020. What is the Purpose of this Scheme? To support [&hellip;]<\/p>\n","protected":false},"author":14,"featured_media":6257,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":[],"categories":[153,155],"tags":[463],"acf":{"service_id":"0"},"authorName":"Priya Tirthani","authorImageUrl":"https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2020\/02\/Priya-Tirthani.jpg","authorDescription":"Ms. Priya Tirthani is a Company Secretary working as a Senior Consultant in Corpbiz.She is having 4 years of Post Qualification Experience in Compliance and Audit.","postViews":6344,"readingTime":4,"_links":{"self":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/6254"}],"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\/14"}],"replies":[{"embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/comments?post=6254"}],"version-history":[{"count":10,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/6254\/revisions"}],"predecessor-version":[{"id":6265,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/6254\/revisions\/6265"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/media\/6257"}],"wp:attachment":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/media?parent=6254"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/categories?post=6254"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/tags?post=6254"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}