LLP Annual Compliance: Applicability of CA Audit in Form 8 and PCS Certification in Form 11 By Sarah Bhandari

Benefits of LLP:

A corporate business that enables professional expertise and entrepreneurial initiative to combine and operate in a flexible, innovative and efficient manner, providing benefits of limited liability while allowing its members the flexibility for organizing their internal structure as a partnership.

Mandatory Annual Filing for LLPs Registered with MCA

  • Annual Return (Form 11)
  • Statement of Account & Solvency (Form 8)
  • Income Tax Returns (ITR-5)
Forms which are required to be filled with MCA?

  •  LLP Form 8 (Statement of Account & Solvency); and

  • LLP Form 11 (Annual Return) annually.
MCA Form Filings Due Date:

The ‘Annual Return’ (Form 11) is required to be filed within 60 days of close of the financial year and ‘Statement of Accounts & Solvency’ (Form 8) shall be filed within 30 days from the end of six months of the financial year to which it relates. Every LLP has to maintain uniform financial year ending on 31st March of a year.

It may be noted that only those LLP whose annual turnover exceeds Rs. 40 lakhs or whose contribution exceeds Rs. 25 lakhs are required to get their accounts audited for the purpose of filing Form 8 to MCA.

In case of LLPs with turnover more than five crore rupees in a financial year or contribution more than fifty lakh rupees, the annual return filed under form 11 needs to be certified by a Company Secretary in Practice.

Penalty for non-filing of Form 8 and 11

Failing to file Form 8 and Form11 within the specified due date will lead to a fine of INR 100 per day.

Penalty for false statement

If in any return, statement or other document required by or for the purposes of any of the provisions of this Act, any person makes a statement—

(a) which is false in any material particular, knowing it to be false; or

(b) which omits any material fact knowing it to be material, he shall, save as otherwise expressly provided in this Act, be punishable with imprisonment for a term which may extend to two years, and shall also be liable to fine which may extend to five lakh rupees but which shall not be less than one lakh rupees
ITR-5 Filling In case of LLP

31st July Applicable to LLPs which are not required to do Tax Audit

30th Sep Applicable to LLPs which are required to do Tax Audit

Penalty for not filing ITR-5

In case of non-compliances in ITR Filing penalty of up to Rs 5,000 (If the return is furnished after the due date but on or after 31st December or 10,000 (In any other case) shall be levied.

In case LLP has been incorporated on or after 1st October of the financial year, then LLP can close its first financial year either on the coming or next 31st March i.e. LLP files its first financial year details for 18 months. However, the ITR shall be filled irrespective of when it is incorporated or whether the LLP has done any business or not.
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