Annual Compliance Calendar
LIMITED
LIABILITY PARTNERSHIP (LLP)
Dated: April 17, 2024,
Editorial No 908
BACKGROUND:
In this Flash editorial,
the author begins by referring to the provisions of the LLP Act, 2018 read with
all the Amendment Acts and rules mentioned there till March 2024.
Post-incorporation
requirements are duties that an LLP is required to meet after its
incorporation. These include filing yearly reports, financial statements,
changing Partners/Designated Partners, adjusting Contribution, and changing
registered office.
All limited liability
partnerships must keep annual accounts that show a true and fair picture of
their financial situation. Even if the LLP does not do business, it must comply
with statutory requirements such as the Annual Return, Balance Sheet, Profit
and Loss Account, and Income Tax Return each year. The statutory fees will be
based on the LLP's capital contribution.
1.
Financial
Year of LLP:
Every LLP has to maintain uniform Financial ending on 31st
March of the year. However, in case of LLP is incorporated after the 30th
day of September of a year, the financial year may end on 31st March
of the year next following that year.
Regular Works
of LLP -LLP ACT- 2008:-
2.
Annual
e-Forms:
|
S. No.
|
Agenda
|
Particulars
|
e-forms
|
Due Date Form
Filling
|
|
Statement Of Account & Solvency
|
A “Statement of Accounts and
Solvency” in prescribed form shall be filed by every LLP with the Registrar
every year. sub-section (3) of section 34
|
LLP-8
|
30th October
|
|
Annual Return
|
Every LLP would be required to file
annual return in Form 11 with ROC within 60 days of closer of financial year.
|
LLP-11
|
30th May
|
3.
More
about Form- 8 and 11:
What is Form – 8?
It is declaration given by all the designated partners of LLP that
whether they are able to pay its debts in full as they become due in the normal
course of business or not.
For the purposes of sub-section (3) of section 34, every limited
liability partnership shall file the Statement of Account and Solvency in Form 8 with
the Registrar, within a period of thirty days from the end of six months of the
financial year to which the Statement of Account and Solvency relates.
Content of Form 8
Part A- Statement of Solvency
Part- B- Statement of Account, Statement of Income & Expenditure
Form- 8 is to be signed by two Designated Partners and certified by
CS, CA, and CWA (in Whole Time Practice).
What is Form – 11?
Form- LLP-11 is Annual Return containing number of partners, total
contribution received by all partners, details of partners, detail of body
corporates as partner, summary of partners.
Every LLP would be required to file annual return in Form 11 with ROC
within 60 days of closer of financial year.
Due Date of Filling of LLP-11 30th May for each year.
REGULAR OTHER REQUIREMENTS:
4.
Requirement
of Audit of Account Under LLP Act- 2008 (Rule
24) of LLP Rules – 2009.
where the partners of such LLP do not decide for audit of the accounts
of the LLP, such LLP shall include in the Statement of Account and Solvency a
statement by the partners to the effect that the partners acknowledge their
responsibilities for complying with the requirements of the Act and the Rules
with respect to preparation of books of account and a certificate in the form
specified in Form 8.
Quick Bites:
a)
Is audit mandatory for
LLP?
Audit of LLP is not mandatory. However, audit of LLP is mandatory if fulfil
any of following conditions:
· Its
turnover exceeds Rs. 40 Lacs; or
· Its
contribution exceeds Rs. 25 Lacs.
5.
INCOME TAX RETURN:
Every LLP have to file the Income Tax return with the Income Tax
Authorities. Filing of returns is mandatory whether the LLP has started any
business or not. Date of Filling of Income Tax Return is as given below:
6.
APPLICABILITY
OF TAX AUDIT ON LLP:
|
Carrying
on business
|
Carrying
on profession
|
|
Total
sales, turnover or gross receipts exceed Rs. 1 crore in the FY.
If
cash transactions are up to 5% of total gross receipts and payments, the
threshold limit of turnover for tax audit is increased to Rs. 10 crores (w.e.f.
FY 2020-21).
|
Total
gross receipts exceed Rs. 50 lakh in the FY.
|
7. MEANING OF PROFESSION:
As per
Section 44AA and rule 6F following include in Profession:
MEANING
OF AUTHORIZED REPRESENTATIVE:
A person who represents any other person, on payment of any fee or
remuneration, before any Tribunal or authority constituted or appointed by or
under any law for the time being in force but does not include an employee of
the person so represented or a person carrying on legal profession or a person
carrying on the profession of Accountancy.
RETURNS
AND RECORD REQUIRED BY LLP:
|
S. No.
|
Agenda
|
Particulars
|
e-forms
|
|
Books of Account
|
LLP should Maintain proper Books of Account.
|
N.A.
|
|
Minutes Book
|
Minute’s book should be maintained
to record minutes of meeting of partner and managing/ executive Committee of
partners.
|
N.A.
|
|
Change in Partner
|
Any change in partner and
designated partner (admission, resignation, cessation, death, expulsion)
should be filed electronically within 30 days of change.
|
Form- 4
|
|
Supplementary LLP Agreement
|
Such admission and cessation will
alter mutual right and duties of partner shall change. Hence, supplementary
LLP Agreement will be required to file within 30 days of change.
|
From-3
|
|
Change in Name
|
Any change in Name of LLP should be
filed electronically within 30 days of change.
|
Form-5
|
|
Change in
Registered Office
|
Any change in place of registered
office of LLP should be filed electronically within 30 days of change.
|
Form- 15
|
Author – CS Divesh
Goyal, GOYAL DIVESH & ASSOCIATES Company Secretary in Practice from Delhi
and can be contacted at csdiveshgoyal@gmail.com).
Disclaimer: The entire
contents of this document have been prepared based on relevant provisions and
as per the information existing at the time of the preparation. Although care
has been taken to ensure the accuracy, completeness, and reliability of the
information provided, I assume no responsibility, therefore. Users of this
information are expected to refer to the relevant existing provisions of
applicable Laws. The user of the information agrees that the information is not
professional advice and is subject to change without notice. I assume no
responsibility for the consequences of the use of such information.
IN NO EVENT SHALL I SHALL BE
LIABLE FOR ANY DIRECT, INDIRECT, SPECIAL OR INCIDENTAL DAMAGE RESULTING FROM,
ARISING OUT OF OR IN CONNECTION WITH THE USE OF THE INFORMATION