LLP Annual Filing, Process for LLP E-filing, and LLP Annual Compliance Calendar

In this blog information such as LLP Annual Filling, LLP Annual Compliance, Income Tax Rate for LLP, the process for LLP E-filing, and other relevant information on Limited Liability Partnership will be included. Returns for a Limited Liability Partnership (LLP) should be filed on a regular basis to ensure compliance and avoid the harsh penalties imposed by the law for non-compliance. When compared to the compliance obligations placed on Private Limited Company, a Limited Liability Partnership has only a few compliances to follow each year.

What is LLP (Limited Liability Partnership)?

A Limited Liability Partnership (LLP) is a legal entity having its rights. It is officially recognized by the Ministry of Corporate Affairs (MCA). To guarantee compliance, accurate accounting records must be kept and an annual return must be filed. To stay in compliance, an LLP can use e-filing.

Important points for filing of Annual Compliance

• The Registrar of Companies requires annual returns to be filed (ROC).

• Annual returns must be accompanied with and filled out in the prescribed LLP Form 11 format.

• LLP Form 11 must be submitted within 60 days of the end of the fiscal year. This might be done every year on the 31st of May.

• Also, it is important to file Form 8 for LLP along with the Form 11. Due date for filling Form 8 is 30th October.

• Even if there is no business activity, every registered LLP (Limited Liability Partnership) must comply with the LLP annual compliance.

• If the LLP has been closed down, or even a bank account in the name of the business does not exist the relevant documents regarding the annual compliances must be maintained.

LLP Annual Compliance Calendar

Process for LLP Annual E-filing

• From the MCA (Ministry of Corporate Affairs) Portal, go to the LLP page and choose a category to get an eForm (with or without the instruction kit)

• You can study the accompanying instruction kit at any moment to become aware of the procedures (you can download the instruction kit with e form or view it under the Help menu).

• Complete the eForm that you have downloaded.

• You must attach all of the required documentation as attachments.

• By connecting to the Internet, you can use the Prefill button in eForm to populate the blanked-out part.

• The applicant or a representative of the applicant must use a digital signature to sign the document.

• To check the form, go to the eForm and click the Check Form button. The mandatory fields, mandatory attachment(s), and digital signature will be checked by the system.

• For pre-scrutiny, you must upload the eForm. The pre-scrutiny service is available under the Services tab or by clicking the Upload eForm button under the eForms tab. The documents will be verified (pre-scrutinized) by the system. If there are any flaws, the user will be requested to correct them before the document is ready for execution.

• Based on the due date of filing, the system will determine the charge, including late payment fees, if required.

• Payments must be made using the appropriate procedures, whether they are electronic (credit card, Internet banking, NEFT, Pay Later) or traditional (at the bank counter through challan).

Electronic payments can be made at the PFO or the Virtual Front Office (VFO). If the user chooses the traditional payment method, the system will print three copies of a pre-filled challan in the format specified. Traditional payments such as cash and checks can be made at a designated network of banks using a challan created by the system. Five banks will be authorized to take challan payments, with an estimated 200 branches.

• For all online payment transactions via payment gateways, the payment will be exclusively confirmed.

• Any transaction’s acceptance or rejection will be reported to the applicant in writing (including the facility to print a receipt for successful transactions).

• LLP will assign a unique transaction number, the Service Request Number (SRN), to the applicant, who can use it to check on the status of the transaction.

• Only when all of the required payments have been completed will the filing be finalized.

• In the event of a denial, the applicant will be given appropriate corrective advice.

• Applicants will receive an acknowledgment via e-mail or can check the LLP (Limited Liability Partnership) site.

Source: Income Tax Department

Information on Income Tax Rate for LLP

• For LLPs registered in India, the income tax rate is 30% of total income. Additionally, Income Tax is paid, when total income exceeds INR 1 crore, a surcharge of 12% is paid on the income.

• LLPs are liable to minimal alternative tax, which is similar to the Income Tax that applies to Companies. LLP is subject to a minimum alternate tax of 18.5% of adjusted gross revenue. As a result, the LLP’s Income Tax Rate cannot be less than 18.5% (increased by Income Tax Education Cess, Surcharge, and Secondary and Higher Education Cess).

• On the amount of Income Tax and the applicable surcharge, there is a 4% Health and Education Cess.

• LLPs must file Form 3CEB if they engaged in an overseas transaction with affiliated enterprises or engaged in certain Specified Domestic Transactions. A Chartered Accountant must certify Form 3CEB. The deadline for LLP tax filing is November 30th for those needing to file Form 3CEB.

• The due date for filing Income Tax Returns for LLPs which does not require Tax Audit is 31st July and if Tax Audit is required then it is 30th September.

Conclusion

If the annual turnover of an LLP reaches INR 40 lakhs in any financial year, or if the contribution exceeds INR 25 lakh, the accounts must be audited by a licensed chartered accountant.

To be excluded from audits, the LLP (Limited Liability Partnership) accounts must include a declaration from the partners stating that the partners recognize their duties for adhering to the accounting and financial statement preparation requirements.