LLP Filing

Audit Requirements under Various Act:-

Under Limited Liability Partnership (LLP) Act:- LLPs are required to have its accounts audited by a practicing Chartered Accountant if its annual turnover, in any financial year exceeds Rs.40 lakhs or its contribution exceeds Rs.25 lakhs. In order to avail the exemption from audit, the LLPs accounts filed with the ROC must contain a statement by the Partners to the effect that the Partners acknowledge their responsibilities for complying with the requirements with respect to accounting and preparation of financial statements.

Under Income Tax Act:- Every LLP whose turnover exceeds INR 1 Cr. in case of a business or INR 50 Lakh in case of a profession, is required to get its books of accounts tax audited under section 44AB of the Income-tax Act. Such audit will have to be completed and filed by 30th September.

Annual Filing :-

LLPs in India must file its Annual Return within 60 days from the end of close of financial year and Statement of Account & Solvency within 30 days from end of six months of close of financial year. Unlike Companies, LLPs mandatorily have to maintain their financial year, as April 1st to March 31st. Therefore, LLP annual return is due on May 30th and the Statement of Account & Solvency is due on October 30th of each financial year. In addition to the MCA annual return, LLPs must also mandatorily file income tax return every year.

LLP FORM 8:-Form 8 is a 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.

• Statement of Account & Solvency:- Form 8 is also known as Statement of Account & Solvency. In Form 8, the LLP must provide details of financial transactions undertaken during the financial year and position at the end of the financial year. In addition to the financial position, the LLP must also:
  (1). Declare that the turnover is above or below Rs. 40 lakhs.
  
  (2). Declare that the LLP has already filed a statement indicating the creation of charges or modification or satisfaction till the present financial year.
  
  (3).Declare that the partners/authorized representatives have taken proper care and responsibility for maintenance of adequate accounting records and preparation of accounts.
  
• Attachments:- The following documents must be attached with Form 8:
  (1). Mandatory: Disclosure under Micro, Small and Medium Enterprises Development Act, 2006.
  
  (2). The case of contingent liabilities exists, Statement of contingent liabilities to be attached.
  
  (3). Any other information can be provided as an optional attachment.
  
• Signature of Partners & Chartered Accountant:- Form 8 must be digitally signed by a minimum of two Designated Partners of LLP or Authorised Representatives of Foreign LLP. Further, if the total turnover of the LLP exceeds Rs. 40 lakhs or partner’s obligation of contribution exceeds Rs. 25 lakh, then Form 8 should be certified by the auditor of the LLP/ FLLP. Else, the digital signature of a minimum of two Designated Partners would suffice.

LLP FORM 11:-Annual return filing under form 11 is a summary of all the designated partners like whether there are any changes in the management of the LLP or not. Every LLP is required to file annual return in Form 11 to the Registrar of companies within 60 days from the closure of financial year i.e. annual return have to be filed on or before 30th May every year.

Penalty:-

If there is a delay in filing Form 8 and 11 of LLP, penalty of Rs. 100 per day per form is payable from the due date of filing return till the date actual return is filed. In short no maximum Cap available in this Case.