In today’s time, each Limited Liability Partnership which is enrolled with the Ministry of Corporate Affairs need to file their annual returns and statement of accounts in the Financial Year....
Each of an LLP which has been a registered one with the MCA or ministry of the corporate affairs has to file a few annual filings each year as it’s a mandatory rule. Now there are three main annual return filing of LLP Registered in 2018 and they are as followed: –
- An annual return.
- The financial statements of the LLP which include Account statements of your registered LLP
- Income tax return filing.
Looking at the rules, some of the entrepreneurs might just be having such doubts about whether they are required to make these filings annually irrespective of their business is going on or not. And the answer to that doubt is yes, well these filings are certain mandatory once you have registered LLP with the MCA. Usually, the reason why it is actually mandatory is that that even though you may or may not be doing any business is precisely known to you but not the government, hence you need to still show your filings of each year. These filings are a way of giving your information of your LLP to the government each year. Let us now discuss some filings in a bit more detail.
How to File Annual Return Filing of LLP?
By the summary, given under the form number 11 for LLP, the partners must notify any changes in their LLP agreement by the management by just making an annual filing. This annual return filing of LLP s done to the registrar through the form number 11 within the time period of 60 days from the date of closing of the financial year. This means that this annual return should be filed on the date on or before the date of May 30th each year. So by that logic, the May 30th becomes the last day for annual return filing for LLP, this year it had to be 30th May 2018.
Now the question of registration dates of the LLPs. Who should file this year annual return for their LLP? This year’s annual return for LLP i.e of the year 2018 will be applicable on those LLPs that were registered until the date of 30th September 2017. In case, if your LLP was registered after this date or on 1st December 2017 then you will be eligible for the annual return filing of LLP in the month of May 2019.
What Are The Audit Requirement Under The LLP Act?
The rules under this are that only the certain LLPs that have a turnover that is exceeding Rs 40 lakhs or has a contribution that has exceeded Rs 25 lakhs will be clearly required for getting an audit report for their accounts. This shall be done by any qualified chartered accountant who shall then certify all your account statements. You can also take the help of professionals at Swarit Advisors, to prepare your audit.
Audit requirement under The Income Tax Act
The audit of the accounts is a mandatory work and a requirement under the income tax act, according to which the audit will be done in case the turnover exceeds Rs 100 lakhs.
Certifications from PCS
Now in case if the turnover going up more than the amount of Rs 5 crore in a financial year or had a contribution which stood more than the number of Rs 50 lakhs then the annual filing has to be certified by a practicing company secretary.
Important Points on LLP Annual Compliance
- When you are thinking of making all the filings by yourself then it’s important that you hire a professional. While making annual filings for your LLP many documents require attestation which will not be so easy, rather it’s a matter of convenience. Also, you shall be able to save much of your taxes by doing the right planning with the help of a professional.
- In case your LLP is out of business, even then till the date of not opening a current bank account, you must file your annual returns even though they ate NIL. Avoiding so will make you liable for penalties and you will have a hard time closing your LLP in future.
Penalty for Non-Filing
In case there’s a delay in filing of form 8 and the form 11 for the LLP, there will be a penalty. Each day there’s a rise in the penalty of Rs 100 from the last date that was meant for filing till the date you actually comply with the annual return filings.