LLP (Limited Liability Partnership) is the hybrid form of Partnership Firm and Company, which is governed by the Limited Liability Partnership Act, 2008.
Unlike Partnership Firm it has to inform Registrar of Companies and to other Departments, time after time. Besides other reporting, LLP is required to file certain reports on due date basis. Let’s discuss it in a shorter way.
Kind of Returns to be filed by LLPs:
Every LLP is required to file returns mandatorily, irrespective of whether the LLP has done business or not or whether it has made profits or not.
Following three returns are to be filed by LLP every year:
- Annual Return to be filed with MCA in Form 11;
- Statement of the Accounts to be filed with MCA in Form 8; and
- Income Tax Returns to be filed with Income Tax Department.
Due date for filing of returns:
*Statement of the Accounts (Form 8):
By 30th October every year
**Annual Return (Form 11):
By 30th May every year
***Income Tax Return:
A- In case Audit is not required by 31st July every year
B- In case Audit is required by 30th September every year
*Note-1:In case LLP has been incorporated on or after 1st October of financial year, then it doesn’t need to file Statement of the Accounts in form 8 in the same year, For Example if an LLP has been registered on 2nd October 2015, then it can file Statement of the Accounts in form 8 by 30th October, 2017. However it can file Statement of the Accounts in form 8 in same year voluntarily.
**Note-2: In case LLP has been incorporated on or after 1st October of financial year, then it doesn’t need to file annual return in form 11 in the same year For Example if an LLP has been registered on 2nd October 2015, then it can file annual return in form 11 by 30thMay, 2017. However it can file annual return in form 11 in same year voluntarily.
In case total number of Designated Partners (DP) and Partners as on 31st March of the financial year for which return is being filed exceeds two hundred, details of each designated partner and partner including their profit sharing details should be verified through the screen for Verifying partners’ detail at LLP portal. These details are required to be provided in the screen before filling this eForm. Once the details are updated on the LLP portal, a service request number (SRN) shall be generated by the system and the same shall have to be mentioned at the time of filing of this form.
Filing of this form shall not be allowed in case there is any other e Form 11 pending for payment of fee or any other eForm 11 is under processing or already approved in respect of the SRN.
***Note-3: It doesn’t matter if LLP has been registered on or after 1st October of Financial year, still it has to file Income tax return in the same year.
Certification of Form-8 by the Auditor of the of the LLP:
In case total turnover of the LLP exceeds Rs. 40 lakhs or partner’s obligation of contribution exceeds Rs. 25 lakh, then the eForm LLP-8 should be certified by the auditor of the LLP.
Certification of Form-8 by practicing professional:
In case the form is certified by a designated partner or authorised representative (i.e. total turnover of the LLP/ FLLP does not exceed Rs. 40 lakhs and partner’s obligation of contribution does not exceed Rs. 25 lakh) then the eForm is to be additionally certified by a practicing professional.
Certification of annual return by PCS (Practicing Company Secretary):
If the turnover of an LLP is more than Rs. 5 crores in a financial year or contribution is more than Rs. 50 lakhs, the annual return in form 11 shall be certified by PCS.
Consequence of non-filing of returns:
For non-filing of form 8 or form 11 within the time as aforesaid, it can be filed with the additional fee of Rs. 100 per day and if LLP fails to file annual return then it will be penalized with fine not less than Rs. 25,000 but which may extends to Rs. 5,00,000 and designated partners shall be punishable with fine which shall not be less than Rs. 10,000 but may extends to Rs. 1,00,000 and in case of non-filing of income tax return as prescribed in Income Tax Act, 1961.