Post incorporation annual compliance for LLP

When it comes to Annual Compliance, LLP is known for its least compliance burden which becomes the major cause for recent surge in incorporations of LLP. The no. of annual compliances for a LLP is the least when compared to other vehicles for carrying out business. Following are the list of compliances for LLP:

Compliances w.r.t. Income Tax Act 1961.

A. Filing of Income Tax Returns

• In Case Tax Audit is not Required U/s 44AB - On or before 31/07/20xx
• In Case Tax Audit is Required U/s 44AB - On or before 30/09/20xx

The dates as mentioned above are sometimes extended by the appropriate authorities with prior intimation of the same. However, It is advisable to not to wait for extensions and due dates so as to avoid last minute rush and crashing servers of the website of concerned authorities.

B. Compliances w.r.t TDS

Payments of TDS - For months April to February Payment of TDS deducted should be made on or before 7th of Succeeding month & for month of March the payment of TDS should be made on or before 30th April (7th April for Govt Deductor)

Returns for TDS - For Q1 (April-June), Q2 (July-September), & Q3 (October- December)  the returns must be filed on or before 31st of the month succeeding the relevant quarter and for Q3 (January-March) return must be filed on or before 31st May

Compliances w.r.t. Audit

As per the provisions of LLP Act 2008 LLPs whose annual turnover exceeds Rs. 40 lakh or whose contribution exceeds Rs. 25 lakh are required to get their accounts audited by a qualified Chartered Accountant mandatorily. If any of the above exceeds its respective limits then the audit by CA becomes mandatory.

• Case A Turnover > Rs. 40 lakhs but Capital < Rs. 25 lakhs, Audit becomes mandatory
• Case B Turnover < Rs. 40 lakhs but Capital > Rs. 25 lakhs, Audit becomes mandatory
• Case C Turnover > Rs. 40 lakhs & Capital > Rs. 25 lakhs, Audit becomes mandatory
• Case D Turnover < Rs. 40 lakhs & Capital < Rs. 25 lakhs, Audit not mandatory

Compliances w.r.t. Ministry of Corporate Affairs

• Filing of Statement of Account & Solvency in accordance with the provisions of LLP Act 2008 - On or before 30th May
• Filing of Statement of Account & Solvency in accordance with the provisions of LLP Act 2008 - On or before 30th October

Point a & b are applicable to already registered LLP always and to newly incorporated LLPs in case newly incorporated LLP registered till 30-09-20xx. If newly incorporated LLP is registered after 01-10-20xx then you have to file above forms in year 20×1.

If there is delay in filing form no.8 and 11 of LLP, you will have to pay penalty as applicable on today’s date. If filing is not done within stipulated time, there is penalty of Rs. 100 per day till it is complied. So if you don’t file on time, your LLP turns into unlimited statutory liability till the day it is complied.

There can be other compliances w.r.t. other laws applicable depending on the nature of the business activity for e.g. FSSAI Licence renewal in case the business of the LLP is related to Food and similar compliances.

There are penal provisions in the respective laws if the above compliances are not made on time. So it is always better to be compliant and respect the laws timely.