LLP Annual Filing

A limited liability partnership, or LLP, is a hybrid between a limited liability company and a partnership. An LLP must have a minimum of two partners; there is no maximum number.

In addition to filing their account statements and certificates of solvency within 30 days of the end of the six-month window after the fiscal year's conclusion, Limited Liability Partnerships are required to file their annual returns within 60 days of the end of the fiscal year.

The LLPs' fiscal year runs from April 1 to March 31, inclusive. The annual return for LLPs is due on the last day of May, whereas the statement of accounts and solvency is due on the last day of October of each fiscal year.

In addition to the MCA yearly form, limited liability partnerships must file an income tax return each year.

At a very low cost, IndiaFilings offers an extensive LLP compliance solution that includes annual filing and LLP income tax return filing.

Income Tax Rate for LLP

For LLPs registered in India, the appropriate income tax rate is 30% of the entire income. A surcharge of the tax payable at the rate of 12% is added to the income tax when the total income exceeds Rs. 1 crore.

Health & Education Cess

On top of the income tax and appropriate surcharge, there is a 4% health and education cess.

Minimum Alternate Tax (MAT) for LLP

LLP is liable to minimal alternate tax, same like income tax applied to a firm. For LLP, an alternate tax of at least 18.5% of total adjusted income is imposed. This means that the amount of income tax that must be paid by the LLP must be at least 18.5 percent (raised by the income tax surcharge, education cess, and secondary and higher education cess).

LLPs Involved in International Transaction

LLPs that participated in certain Specified Domestic Transactions or foreign transactions with associated entities are required to file Form 3CEB. Chartered Accountant certification is required for Form 3CEB. The LLPs' due date for submitting Form 3CEB is November 3rd.

Procedure for LLP Tax Filing

LLPs are required to submit a Form ITR 5 income tax return. The digital signature of the chosen partner may be used to electronically submit Form ITR 5 through the income tax website. The taxpayer must print two copies of Form ITR-V after submitting an LLP tax return.

Send one ITR-V form that has been signed by the assessee by regular mail to Post Bag No. 1, Electronic City Office, Bengaluru, Karnataka 560100. The assesses may keep the second copy for his records.

LLP Tax Payment

Payments for LLP taxes may be made electronically or physically through approved banks. LLPs must only pay taxes electronically if they must have their financial records audited. The tax payment must be accompanied by Challan ITNS 280, as shown below, in order to pay taxes at approved banks.

LLP Accounts Maintenance

Each Limited Liability Partnership must keep accurate accounts with banks on either an accrual basis or a cash basis. Private Limited Companies must only keep accrual-based books of accounts, as required by law.

Additionally, the LLPs have the option of maintaining their financial records on a cash basis. The LLP's registered office is where the books of accounts must be kept, and they must include all the following information:

1. Money received and spent
2. Assets and liabilities
3. Statement of COGS
4. Inventories and finished goods statement.

The LLPs must compile their financial statements within six months of the end of each fiscal year in order to submit them to the ROC.

What are Statements of Accounts and Solvency?

The kept books of accounts, which list the profits made and other important financial information about the business, must be provided annually with Form 8.

Form 8 must be duly signed and attested by the designated partners. Additionally, it must be certified by a licensed chartered accountant, licensed company secretary, or licensed cost accountant.

If the solvency report and statement of accounts are not submitted within the specified time limit, a penalty of Rs. 100 per day will be imposed.

Annual filing for Limited Liability Partnerships

The LLPs are required to select the partners who would maintain correct books of accounts and submit annual returns to the Ministry of Corporate Affairs.

Except in cases where the LLPs' annual turnover exceeds Rs. 40 lakh or if the contribution exceeds Rs. 25 lakh, the LLPs' books of accounts do not need to be audited. As a result, the LLPs' annual filing process is less complicated. Even if the LLP has not started doing business, some annual filings are required.

The due date for Income Tax Returns ( as extended)

The deadline has been extended from December 31st, 2020, to January 10th, 2021, and if a tax audit is necessary for an LLP, the deadline for IT returns for LLP has been extended from January 31st, 2021, to February 15th, 2021.

The LLP must file a Nil Income Tax return with the tax authorities even if it did not conduct any activity during the current fiscal year.

LLP form 8 Due date

A LLP Form 8 annual filing needs to be submitted to ROC each year. Within 30 days of the end of the first six months of the financial year to which the statement refers, a statement of account and proof of solvency must be filed with the registrar. The LLP annual filing deadline is October 30, 2020.

The designated partners' statement regarding the LLP's solvency status is included on this form, together with details regarding the LLPs' statements of assets, liabilities, income, and spending.

LLP Tax Audit

If an LLP's annual turnover or contribution in any financial year exceeds Rs. 40 lakh, the LLP must have the accounts audited by a licensed chartered accountant.

The LLP accounts must include a declaration from the partners stating that they accept responsibility for adhering to the rules governing accounting and the preparation of financial statements in order to qualify for audit exemption.

Dedicated Advisor

You will have a single point of contact for your LLP's compliance needs when you work with the dedicated Compliance Manager who has been assigned to your LLP. Anytime you need assistance with issues pertaining to your LLP's compliance, get in touch with your compliance manager.

Accounting

Every LLP must keep records and provide financial statements at the conclusion of each fiscal year. Our Compliance Manager will assist your LLP with account maintenance and will create your company's financial statement at the conclusion of the fiscal year.

Form 11 Filing

Using the information you supply, we will create and submit Form 11 for your LLP. We must have each partner's contribution from the prior year in order to submit Form 11.

Form 8 Filing

According to the data you supply, we will create and submit Form 8 for your LLP. The company's accounting and financial statements must be prepared by us in order to file Form 8.

Income Tax Return

A LLP must file an income tax return regardless of income, profit, or loss. As a result, even an LLP with no transactions must file an income tax return each year. If no tax audit is required, the LLP income tax return is due on July 31. The LLP income tax return will be submitted on September 30th if a tax audit is necessary.