{"id":15943,"date":"2020-11-11T15:48:11","date_gmt":"2020-11-11T10:18:11","guid":{"rendered":"https:\/\/swaritadvisors.com\/learning\/?p=15943"},"modified":"2023-03-30T12:49:45","modified_gmt":"2023-03-30T07:19:45","slug":"mca-extends-due-date-under-llp-settlement-scheme-2020","status":"publish","type":"post","link":"https:\/\/swaritadvisors.com\/learning\/mca-extends-due-date-under-llp-settlement-scheme-2020\/","title":{"rendered":"MCA Extends the Due Date under LLP Settlement Scheme 2020"},"content":{"rendered":"\n<p class=\"has-drop-cap\">All the\nLLPs (Limited Liability Partnerships) registered under the provisions of the\nLimited Liability Act 2008, need to file&nbsp;two statutory forms, i.e., Form\n11&nbsp;and&nbsp;Form 8on an annual basis.<\/p>\n\n\n\n<p>Further,\nan LLP requires to submit the \u201cAnnual Return in Form 11 within 60 days\u201d,\nstarting from the date of end of the financial year, i.e., by 30<sup>th<\/sup>\nMay of the succeeding financial year<strong><em>.<\/em><\/strong><\/p>\n\n\n\n<p>Also, it needs to furnish the \u201cStatement of Account &amp; Solvency in Form 8 within 30 days\u201d starting from the date expiry of six months from the end of the financial year, i.e., by 31<sup>st<\/sup> October of the following financial year.<\/p>\n\n\n\n<p>However, the <strong>Ministry of Corporate Affairs (MCA)<\/strong><sup><a class=\"text-primary\" href=\"https:\/\/www.mca.gov.in\/content\/mca\/global\/en\/home.html\"><strong><em>[1]<\/em><\/strong><\/a><\/sup> by way of a General Circular No. 37\/2020 issued on 09.11.2020 has extended the due dates for submitting the Belated Documents from 30.11.2020 to 31.12.2020.<\/p>\n\n\n\n<p>In this blog, we will discuss thoroughly about the extended due dates of filing Belated Documents under LLP Settlement Scheme 2020. <\/p>\n\n\n\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_65 counter-hierarchy ez-toc-counter ez-toc-light-blue ez-toc-container-direction\">\n<p class=\"ez-toc-title\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-6a54b2c1769cd\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-6a54b2c1769cd\"  aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/swaritadvisors.com\/learning\/mca-extends-due-date-under-llp-settlement-scheme-2020\/#Issues_Covered_Under_General_Circular_No_372020\" title=\"Issues Covered Under General Circular No. 37\/2020\">Issues Covered Under General Circular No. 37\/2020<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/swaritadvisors.com\/learning\/mca-extends-due-date-under-llp-settlement-scheme-2020\/#Applicability_of_LLP_Settlement_Scheme_2020\" title=\"Applicability of LLP Settlement Scheme 2020\">Applicability of LLP Settlement Scheme 2020<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/swaritadvisors.com\/learning\/mca-extends-due-date-under-llp-settlement-scheme-2020\/#Definitions_under_LLP_Settlement_Scheme_2020\" title=\"Definitions under LLP Settlement Scheme 2020\">Definitions under LLP Settlement Scheme 2020<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/swaritadvisors.com\/learning\/mca-extends-due-date-under-llp-settlement-scheme-2020\/#Defaulting_LLP\" title=\"Defaulting LLP\">Defaulting LLP<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/swaritadvisors.com\/learning\/mca-extends-due-date-under-llp-settlement-scheme-2020\/#Belated_Documents\" title=\"Belated Documents\">Belated Documents<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/swaritadvisors.com\/learning\/mca-extends-due-date-under-llp-settlement-scheme-2020\/#Reasons_Behind_the_Extension_in_Due_Dates\" title=\"Reasons Behind the Extension in Due Dates\">Reasons Behind the Extension in Due Dates<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/swaritadvisors.com\/learning\/mca-extends-due-date-under-llp-settlement-scheme-2020\/#Rectification_of_Irregularity_in_Extension_of_LLP_Scheme_2020\" title=\"Rectification of Irregularity in Extension of LLP Scheme 2020\">Rectification of Irregularity in Extension of LLP Scheme 2020<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/swaritadvisors.com\/learning\/mca-extends-due-date-under-llp-settlement-scheme-2020\/#Overview_of_General_Circular_No_132020\" title=\"Overview of General Circular No. 13\/2020\">Overview of General Circular No. 13\/2020<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-9\" href=\"https:\/\/swaritadvisors.com\/learning\/mca-extends-due-date-under-llp-settlement-scheme-2020\/#Need_of_General_Circular_No_372020\" title=\"Need of General Circular No. 37\/2020\">Need of General Circular No. 37\/2020<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-10\" href=\"https:\/\/swaritadvisors.com\/learning\/mca-extends-due-date-under-llp-settlement-scheme-2020\/#Outcome_of_General_Circular_No_372020\" title=\"Outcome of General Circular No. 37\/2020\">Outcome of General Circular No. 37\/2020<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-11\" href=\"https:\/\/swaritadvisors.com\/learning\/mca-extends-due-date-under-llp-settlement-scheme-2020\/#Extension_of_Due_Dates_for_Filing_Form_8\" title=\"Extension of Due Dates for Filing Form 8\">Extension of Due Dates for Filing Form 8<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-12\" href=\"https:\/\/swaritadvisors.com\/learning\/mca-extends-due-date-under-llp-settlement-scheme-2020\/#Conclusion\" title=\"Conclusion\">Conclusion<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-13\" href=\"https:\/\/swaritadvisors.com\/learning\/mca-extends-due-date-under-llp-settlement-scheme-2020\/#General_Circular_No_372020\" title=\"General Circular No. 37\/2020\">General Circular No. 37\/2020<\/a><\/li><\/ul><\/nav><\/div>\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Issues_Covered_Under_General_Circular_No_372020\"><\/span>Issues Covered Under General Circular No. 37\/2020<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>The issues covered under General Circular No. 37\/2020 are as follows:<\/p>\n\n\n\n<ol><li>Rectification of the Irregularity in Extension of LLP Scheme 2020.<\/li><li>Extension of Due Dates for Filing Form 8.<\/li><\/ol>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Applicability_of_LLP_Settlement_Scheme_2020\"><\/span>Applicability of LLP Settlement Scheme 2020<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>All the Defaulting LLPs\nwho need to file belated documents or specified forms are covered under the\nambit of LLP Settlement Scheme 2020. <\/p>\n\n\n\n<p>However, it shall be relevant to state that the LLPs that have already submitted an application in Form 24 under rule 37 (1) of the LLP Rules 2009, for Strike off their name to the Registrar are not covered under the ambit of LLP Settlement Scheme 2020.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Definitions_under_LLP_Settlement_Scheme_2020\"><\/span>Definitions under LLP Settlement Scheme 2020<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>The two main definitions under LLP Settlement Scheme 2020 are as follows: <\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Defaulting_LLP\"><\/span>Defaulting LLP<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>The term \u201cDefaulting LLP\u201d denotes a Limited Liability Partnership Firm that has made default in filing of the documents within the Due Dates prescribed under the LLP Act 2008 and the rules made thereunder.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Belated_Documents\"><\/span><strong>Belated Documents<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>The term \u201cBelated Documents\u201d denotes the forms and documents that are needed to be filed under MCA21, in accordance with the provisions of the Limited Liability Partnership Act 2008 and the rules made thereunder.<\/p>\n\n\n\n<p><b>Also, Read:<\/b> <mark style=\"background: #fffd03 !important;\"><a href=\"https:\/\/swaritadvisors.com\/learning\/what-are-the-key-highlights-of-limited-liability-partnership\/\">What are the Key Highlights of Limited Liability Partnership?<\/a><\/mark><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Reasons_Behind_the_Extension_in_Due_Dates\"><\/span>Reasons Behind the Extension in Due Dates<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>The Reasons behind the Extension of Due\nDates are as follows:<\/p>\n\n\n\n<ol><li>To provide support to <strong><a href=\"https:\/\/swaritadvisors.com\/limited-liability-partnership-registration\" class=\"text-primary\">Limited Liability partnership In India<\/a><\/strong> that are registered.<\/li><li>To focus on taking required measures to deal with the COVID-19 pandemic<\/li><li>To reduce Compliance Burden<\/li><li>To boost Indian Economy<\/li><li>To offer relief to Corporates<\/li><\/ol>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Rectification_of_Irregularity_in_Extension_of_LLP_Scheme_2020\"><\/span>Rectification of Irregularity in Extension of LLP Scheme 2020<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>On 09.11.2020, the Ministry of Corporate Affairs has issued a <strong>General Circular No. 37\/2020<\/strong><sup><a class=\"text-primary\" href=\"https:\/\/www.mca.gov.in\/Ministry\/pdf\/GeneralCircularNo.37_09112020.pdf\"><strong><em>[2]<\/em><\/strong><\/a><\/sup>, in the continuance of its previous General Circular No. 31\/ 2020 dated 28.09.2020 and General Circular No 13\/ 2020 dated 30.03.2020. Further, this circular is related to the Extension of LLP Settlement Scheme 2020.<\/p>\n\n\n\n<p>The reason for issuing General Circular No. 37\/2020 was to rectify the irregularity arising out of its previous Circular No 13\/2020 dated 30.03.2020.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Overview_of_General_Circular_No_132020\"><\/span>Overview of General Circular No. 13\/2020<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>By way of General Circular No. 13\/2020, dated 30.03.2020, the MCA (Ministry of Corporate Affairs) has modified the provisions concerning LLP Settlement Scheme 2020. The main amendment bought was to allow one time condonation of delay in filing of documents and statutory forms by LLPs with the Registrar.<\/p>\n\n\n\n<p>Further, by way of the LLP Settlement Scheme 2020, every \u201cDefaulting\nLLP\u201d was allowed to file its belated documents and statutory forms with the\nregistrar by 31.08.2020, in accordance with the provisions of the Settlement\nScheme.<\/p>\n\n\n\n<p>Earlier, the last date for availing of the benefit of the Settlement Scheme was 30.9.2020. However, the same has been extended till 31.12.2020 by way of MCA General Circular No. 31\/2020, dated 28.09.2020.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Need_of_General_Circular_No_372020\"><\/span>Need of General Circular No. 37\/2020<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>As we know that, the last date for availing of the benefit of the Settlement Scheme has been extended till 31.12.2020 by way of MCA General Circular No. 31\/ 2020, dated 28.09.2020.<\/p>\n\n\n\n<p>However,\nit shall be significant to mention that no such parallel extension was being\nmade in the cutoff date of the Settlement Scheme, i.e., the due date up to\nwhich the statutory documents or forms were originally required to be filed. Further,\nthe due dates were 31.08.2020.<\/p>\n\n\n\n<p>Therefore,\nthe omission in the extension of the cutoff date was resulting in an\nirregularity, wherein the \u201cDefaulting LLPs\u201d were allowed to file statutory\nforms upto 31.12.2020, which were due for filing upto 31.08.2020.&nbsp; <\/p>\n\n\n\n<p>However,\nno such relaxation was given for the Statutory Documents or Forms, comprising\nof the Statement of Account and Insolvency in Form-8, which were due for filing\nafter 31.08.2020.<\/p>\n\n\n\n<p>As a result, this irregularity was resulting in some irrational conclusions, in which the defaulting LLPs were able to file their Form 8 for the F.Y. 2018 \u2013 2019, belatedly up to 31.12.2020, but were unable to avail of similar extensions by filing of the Form-8 for the F.Y. 2019 \u2013 2020. Further, the due date for filing of Form-8 for the F.Y. 2019 \u2013 2020 is 31.10.2020, which is clearly comes after 31.08.2020.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Outcome_of_General_Circular_No_372020\"><\/span>Outcome of General Circular No. 37\/2020<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>After taking cognizance of this\nirregularity, MCA has decided to extend the cutoff dates for the applicability\nof the Settlement Scheme 2020 till 30.11.2020 from 31.08.2020.<\/p>\n\n\n\n<p>Consequently, the defaulting LLPs will\nnow be able to file their belated statutory documents or forms including Form 8\nand 11 by 31.12.2020, which were earlier to be filed on or before 30.11.2020.<\/p>\n\n\n\n<p>In\nshort, now a defaulting LLP can file form 8 and 11 for the Financial Year 2019\n\u2013 2020 by 31.12.2020.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Extension_of_Due_Dates_for_Filing_Form_8\"><\/span>Extension of Due Dates for Filing Form 8<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Also, it shall be taken into note that MCA by way of the same notification, i.e., General Circular No. 37\/2020, dated 09.11.2020, has provided that if a \u201cStatement of Account and Solvency\u201d, i.e., Form 8 for the F.Y. 2019 \u2013 2020 has been signed after the expiry of 6 months, starting from the end of the financial year, but not later than 30.11.2020, the same will not be considered as \u201cNon-compliance. <\/p>\n\n\n\n<p>That means the actual date of filing\nForm 8 for the F.Y. 2019 \u2013 2020 by LLPs has been extended to 30.11.2020 from\n31.10.2020. Also, &nbsp;the LLPs filing Form 8\nshall not be deemed as Defaulting LLPs.<\/p>\n\n\n\n<p>However, it shall be pertinent to state that, if an LLP commits default in filing Form 8 for the F.Y. 2019 \u2013 2020 by 30.11.2020, then such a firm will not be able to avail of the benefit of the LLP Settlement Scheme 2020. Further, the term \u201cBenefit\u201d denotes the facility to belatedly file Form 8 for the F.Y. 2019 \u2013 2020 by 31.12.2020.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Conclusion\"><\/span>Conclusion<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>In\na nutshell, in the continuance of General Circular No.13\/ 2020 and 31\/ 2020,\ndated 30.03.2020 and 28.09.2020 respectively, MCA has extended the due date for\nfiling statutory forms under LLP Settlement Scheme 2020. The reason behind the\nsame is to provide support to LLPs (Limited Liability partnerships) that are\nregistered in India amid COVID-19 pandemic.<\/p>\n\n\n\n<p>Also,\nthe MCA has decided to rectify the irregularity earlier caused by extending the\ncutoff dates for the applicability of the Settlement Scheme 2020 till\n30.11.2020 from 31.08.2020. That means now a defaulting LLP can file form 8 and\n11 for the Financial Year 2019 \u2013 2020 by 31.12.2020.<\/p>\n\n\n\n<p>Further, the MCA has extended the actual date of filing Form 8 for the F.Y. 2019 \u2013 2020 by LLPs to 30.11.2020 from 31.10.2020 as well.<\/p>\n\n\n\n<p><b>Also, Read:<\/b> <mark style=\"background: #fffd03 !important;\"><a href=\"https:\/\/swaritadvisors.com\/learning\/llp-registration-procedure-in-india\/\">What is LLP Registration Procedure in India?<\/a><\/mark><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"General_Circular_No_372020\"><\/span>General Circular No. 37\/2020<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n<a href=\"https:\/\/swaritadvisors.com\/learning\/wp-content\/uploads\/2020\/11\/GeneralCircularNo.37_09112020.pdf\" class=\"pdfemb-viewer\" style=\"\" data-width=\"max\" data-height=\"max\"  data-toolbar=\"bottom\" data-toolbar-fixed=\"off\">GeneralCircularNo.37_09112020<br\/><\/a>\n<p class=\"wp-block-pdfemb-pdf-embedder-viewer\"><\/p>\n\n\n\n<p>&nbsp; <\/p>\n","protected":false},"excerpt":{"rendered":"<p>All the LLPs (Limited Liability Partnerships) registered under the provisions of the Limited Liability Act 2008, need to file&nbsp;two statutory forms, i.e., Form 11&nbsp;and&nbsp;Form 8on an annual basis. Further, an LLP requires to submit the \u201cAnnual Return in Form 11 within 60 days\u201d, starting from the date of end of the financial year, i.e., by [&hellip;]<\/p>\n","protected":false},"author":17,"featured_media":15945,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[167,1],"tags":[884,885],"_links":{"self":[{"href":"https:\/\/swaritadvisors.com\/learning\/wp-json\/wp\/v2\/posts\/15943"}],"collection":[{"href":"https:\/\/swaritadvisors.com\/learning\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/swaritadvisors.com\/learning\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/swaritadvisors.com\/learning\/wp-json\/wp\/v2\/users\/17"}],"replies":[{"embeddable":true,"href":"https:\/\/swaritadvisors.com\/learning\/wp-json\/wp\/v2\/comments?post=15943"}],"version-history":[{"count":14,"href":"https:\/\/swaritadvisors.com\/learning\/wp-json\/wp\/v2\/posts\/15943\/revisions"}],"predecessor-version":[{"id":19111,"href":"https:\/\/swaritadvisors.com\/learning\/wp-json\/wp\/v2\/posts\/15943\/revisions\/19111"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/swaritadvisors.com\/learning\/wp-json\/wp\/v2\/media\/15945"}],"wp:attachment":[{"href":"https:\/\/swaritadvisors.com\/learning\/wp-json\/wp\/v2\/media?parent=15943"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/swaritadvisors.com\/learning\/wp-json\/wp\/v2\/categories?post=15943"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/swaritadvisors.com\/learning\/wp-json\/wp\/v2\/tags?post=15943"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}