Description
LLP Annual Filing
LLP or the Limited Partnership is a combination of a limited and partnership company. Minimum two partners are required to incorporate an LLP there is no such upper limit.
Limited Liability Partnerships are required to file the annual returns within 60 days from the end of the close of the financial year and account statement and solvency within 30 days from the end of six months of the closure of the financial year.
The financial year for the LLPs starts from the 1st of April to the 31st of March. The annual return for the LLPs is due on May 30th while the statement of accounts and solvency is due on the 30th of October of each financial year.
Besides the MCA annual return filing, the limited liability partnerships must also mandatorily file the income tax return every year.
Taxology provides anout and out LLP compliance service that includes annual filing and LLP income tax return filing at a very affordable price point.
Income Tax Rate for LLP
The income tax rate applicable for LLPs registered in India is 30% of the total income. Besides the income tax, a surcharge is levied on the income of the tax payable at the rate of 12% when the total income is exceeding Rs.1 crore.
Health & Education Cess
Health and Education cess of 4% is applicable on the amount of income tax and the applicable surcharge.
Minimum Alternate Tax (MAT) for LLP
Similar to income tax applicable for a company, LLP is also subject to minimum alternate tax. A minimum alternate tax of 18.5% of adjusted total income is applicable for LLP. Hence, income tax payable by LLP cannot be less than 18.5 percent (increased by income tax surcharge, education cess).
LLPs Involved in International Transaction
LLPs that entered into an international transaction with associated enterprises or undertook certain Specified Domestic Transactions are required to file Form 3CEB. Form 3CEB must be certified by a Chartered Accountant. LLPs required to file Form 3CEB have 3oth November as the deadline for LLP tax filing.
Procedure for LLP Tax Filing
LLPs must file an income tax return using Form ITR 5. Form ITR 5 can be filed online through the income tax website using the digital signature of the designated partner. After filing an LLP tax return, the taxpayer should print a copy of Form ITR-V.
The copy of ITR-V, signed by the assessee should be sent by ordinary post to Post Bag No. 1, Electronic City Office, Bengaluru–560100 (Karnataka).
LLP Tax Payment
LLP tax payment can be made via E-payment mode. LLPs that are required to get their accounts audited are required to pay tax through e-payment mode only. To pay tax at designated banks, Challan ITNS 280 as provided below must be provided with the tax payment.
LLP Accounts Maintenance
All the Limited Liability Partnership are required to maintain proper account banks on a cash basis or accrual basis. As Private Limited Companies are required to maintain books of accounts only on an accrual basis.
The LLPs have the option of maintaining the books of accounts on a cash basis as well. The books of accounts must be maintained at the registered office of the LLP and must contain all the information like:
- Money received and spent
- Assets and liabilities
- Statement of COGS
- Inventories and finished goods statement.
At the end of each financial year, the LLPs are required to prepare their financial statements within 6 months for filing with the ROC.
What are Statements of Accounts and Solvency?
All registered LLPs are required to maintain their books of accounts and fill the data regarding the profits incurred as well as other financial data relevant to business and submit it along with Form 8 every year.
Form 8 must be attested by the designated partners by duly signing it. It is also necessary to get it certified by a practicing chartered accountant or a practicing company secretary or a practicing cost accountant.
Failing to file the statement of accounts and the solvency report within the specified duration will lead to a penalty of Rs. 100 per day.
Annual filing for Limited Liability Partnerships
The LLPs are required to elect the partners for maintaining proper books of accounts and filing the annual return with the Ministry of Corporate Affairs annually.
The book of accounts of the LLPs need not be audited except in case the annual turnover is more than Rs.40 lakh or if the contribution is more than Rs. 25 lakh. Hence, the process of annual filing is simpler for the LLPs. Some of the annual filings are mandatory even if the LLP has begun the business or not.
The due date for Income Tax Returns
The due date is 31st July if tax audit is not required and if tax audit is required for the LLP then the due date for IT returns for LLP 31st October.
Even if the LLP has not done any business for the current financial year, the LLP is required to file a Nil Income Tax returns with the tax authorities.
LLP form 8 Due date
LLP Form 8 is an annual filing is to be filed with ROC every year. Statement of account and solvency shall be filed with the registrar within 30 days from the end of 6 months of the financial year to which the statement relates. The due date for LLP annual filing is 30th October 2021.
This form includes a declaration on the solvency state of the LLP by the designated partners and also information related to the statement of assets and the liabilities and statement of income and the expenditure of the LLPs.
LLP Tax Audit
LLPs are required to get the accounts audited by a practicing chartered accountant if the annual turnover in any financial year exceeds Rs. 40 lakhs or if the contribution exceeds Rs. 25 lakh.
To avail exemption from audits, the LLP accounts must contain a statement by the partners to the effect that the partners acknowledge their responsibilities for complying with the requirements concerning accounting and preparation of financial statements.
Committed Experts
Your LLP will be assigned a committed compliance manager who will be a single point of contact to help you maintain the compliance for your LLP. You can get in touch with your Compliance Manager at anytime and get assistance on matters related to your LLP’S compliance.
1- Accounting / Book Keeping
All LLP are required to maintain accounts and prepare financial statements at the end of each financial year. Our Compliance Manager will help your LLP maintain accounts and will prepare the financial statement for your business at the end of financial year.
2- Form 11 and Form 8
We will prepare and file Form 11 for your LLP based on information provided by you. To file Form 11, we will require the contribution paid by each partner in the previous year.We will prepare and file Form 8 for your LLP based on information provided by you. To file Form 8, we will be responsible for preparation of the accounting and financial statements preparation for the company.
3- Income Tax return
Income tax return for a LLP must be filed irrespective of income, profit or loss. Hence, even a LLP with no transactions are required to file income tax return each year. LLP income tax return will be due on 31st July if there is no tax audit requirement. If tax audit is required, the LLP income tax return will be due on 31st
LLP Tax Return Filing Plans
All Inclusive Pricing – No Hidden Fee
Annual return filing, income tax return filing, Preparation of Financials and compliance management for a LLP with a turnover of less than Rs.10 lakhs per annum.
Annual return filing, income tax return filing, Preparation of Financials and compliance management for a LLP with a turnover of less than Rs.40 lakhs per annum.
Annual return filing, income tax return filing, Preparation of Financials and compliance management for a LLP with a turnover of less than Rs.40 lakhs per annum.
General questions
The LLP Form 8 or the statement of account and the solvency is to be filed every year by all the LLPs that are registered in India. It is filed with the MCA irrespective of the turnover.
LLPs are required to get the accounts audited by a practicing chartered accountant if the annual turnover in any financial year exceeds Rs. 40 lakhs or if the contribution exceeds Rs. 25 lakh.
An LLP is supposed to file the LLP annual return in Form 11, the financial statement of the accounts and solvency, and the income tax return.
The Partners need to comply with the annual return filing with the MCA, filing the statement of accounts.
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