LLP Annual Returns
Every Limited Liability Partnership (LLP) (LLP) should file their returns periodically for maintaining compliance and avoid a heavy penalty under law for being non-compliant. A Limited Liability Partnership (LLP) has only less compliance to follow as compared to other types of company registration like Private Limited, One Person Company etc. However, the penalty seems to be much more in Limited Liability Partnership (LLP) than other business forms. Being non-compliant may cost you a fine of around 1 lakh in a private limited while in Limited Liability Partnership (LLP), it can go up to 5 lakhs.
ROC Filing Of LLP
Limited Liability Partnership (LLP)s are separate legal entities; hence it is the responsibility of the elected partners to maintain a proper book of accounts, filing the Annual returns with MCA annually and pay taxes on time. Limited Liability Partnership (LLP)s are not required to audit their books of account except where their annual turnover is more than INR 40 lakhs or if the contribution is more than INR 25 lakh. Hence, an LLP is not required to get their books of account audited if it fulfills the above-mentioned condition, making the process of annual filing simpler.
Filing Annual Return:
Annual Returns are to be filed in the prescribed Form-11. This form is considered as the summary of management affairs of LLP, like numbers of partners along with their names. Moreover, the Annual Return has to be filed by 30th May every year, apart from the annual returns LLPs are required to file Statement OF Accounts and Statement Of Solvency by 30th Oct every Year.
Filing and Audit requirement under Income Tax Act:
Limited Liability Partnership (LLP)s whose turnover is more than INR 40 lakh or whose contribution has exceeded INR 25 Lakh are mandated to get their books of accounts audited by a practicing Chartered Accountant. The deadline to file the tax return for an LLP which is required to get his books audited is September 30th. For LLPs where tax audit is not required deadline, the due date for tax filing is July 31st.
For LLPs which have entered into any international transactions with associated enterprises or have undertaken specified Domestic Transactions, need to file Form 3CEB. This form should be certified by a practicing Chartered Accountant. Limited Liability Partnership (LLP)s which are required to file this Form can do their tax filing by 30th November.
LLPs should file their income tax return in Form ITR 5. This form could be filed online via the income tax website with the help of the designated partner’s digital signature.