How many returns are mandatory in the case of LLP?
1. Income tax return
According to the Income Tax Act, it is imperative for an LLP to close its financial year every year on March 31 and the returns have to be filed before the scheduled date with Income Tax Department. July 31 will be the last date if it is not imperative to audit the accounts under any regulation. On the other hand, September 30 will be the last date if it is imperative to audit the accounts under any regulation.
2. DIR-3 KYC
Every single LLP designated partner holding a Director Identification Number (DIN) allotted on the 31st of March or before that of every financial year is required to file DIR-3 KYC.
In case it is not possible to file the KYC before the due date, the Director Identification Number is going to be denoted as deactivated because of non-filing of the form and one has to make a payment of 5000 INR as a fine to make the DIN activated once again.
Form-11 happens to be an annual return, which all LLPs that have been registered under the 2008 Limited Liability Partnership Act have to file.
Applicability – It is imperative for every LLP to file Form-11 irrespective of whether the LLP had any transaction of business during the year or not.
Form filing time limit – Within 2 months from the closure of every financial year, which is May 30.
Required documents that have to be submitted with the form:
Particulars of LLPs where Designated Partners happen to be directors and partners.
If the form is not filed within the due date, one has to pay a penalty of 100 INR every day till the filing date.
4. Form- 8
This one is a statement of solvency and accounts by the LLP. The LLP has to declare to the ROC that its financial position is sound and it will be able to pay its debts or liabilities.
The time limit for filing the form is October 30 of every financial year. The documents that one has to submit together with the form are disclosures under the 2006 Micro, Small, and Medium Enterprises Development Act.
In case the form is not filed within the due date, one has to pay a penalty of 100 INR every day till the filing date.
What are the mandatory compliances of LLP?
You will come across some particular LLP compliances which have been set by the MCA (Ministry of Corporate Affairs) that controls LLP after incorporation. These have been mentioned below:
1. File LLP agreement and preparation with MCA
It is important to file Limited Liability Partnership India with MCA within a period of one month following incorporation.
2. TAN and PAN application
The LLP’s PAN/TAN will be sent by the PAN/TAN department to the registered address of the LLP office. Online TAN registration and PAN registration are extremely relevant for the LLP.
3. Opening of bank account
It is imperative to open a bank account along with the subsequent documents since it happens to be a corporate entity:
• LLP agreement
• LLP Registration certificate issued by ROC
• PAN of the LLP
• List of partners
• Address proof and PAN of partners.
• Resolution for the opening of a bank account
4. Auditor appointment
An auditor is not required when it comes to LLP. However, it becomes imperative to appoint an auditor in case the LLP turnover becomes more than 40 lakh INR or the capital contribution becomes more than 25 lakh INR.
5. Other forms which are event-based: 30 days will be the date for filing the forms from the event date.
6. Non-compliance can lead to a penalty: Make it a point that the LLP Annual Return form is filed within the due date. Otherwise, one has to pay a penalty of 100 INR every day for non-compliance.
7. Income tax return filing: An income tax return has to be filed for every single LLP in the country irrespective of revenue or profits. Consequently, it is imperative for even a dormant LLP to file an income tax return.
Benefits of providing tax on time for LLP
1. Save interest
One might be required to pay interest on the tax payable in case he does not file an income tax return on time. There will be no relief on penalty in case the filing of income tax return is done late.
2. Avoid notice from the IT department
In case you do not file your income tax returns on time, you might be sent a notice by the IT department. This can spoil your mental peace in the long run.
3. It becomes easy to get loans
In case you provide a tax on time for LLP, it will be easy to get loans from the lenders. While applying for a loan, you need to provide a copy of your income tax return statement to the bank as evidence of income statement.
How MyRegistration Company helps in this regard
In this increasingly competitive environment of today, companies are always pressurized to improve their performance. For this, exploration of innovative revenue-generating opportunities is imperative for them. We, at MyRegistration, can boast of having a competent team of experts that are equipped with collaborative technologies as well as industry knowledge for helping you with tax-related regulations and legislation in India. You simply need to define the manner in which you would like to collaborate and our company will adjust our technology and procedures while taking accountability for your compliance obligations as well.