CA Shivani Agarwal
What is LLP
LLP is a way between Company and Partnership. It takes into account the benefits of both i.e. less legal and regulatory formalities as compared to Company and a Corporate Entity form which is not in the case of Partnership.
Exemption from Audit
Rule 24(8) exempt the LLP from the Audit of its accounts if its turnover does not exceed, in any financial year, Rs. 40 lakhs or its contribution does not exceed Rs. 25 Lakhs. Appointment of Auditors
LLPs have to appoint auditor within 30 days before the end of the financial year. In other words auditor has to be appointed before 1st March every year.
Appointment by designated Partners
The designated partners may appoint an auditor:
Appointment by Partners
If the designated partners have not appointed then the Partners can assume this responsibility.
Who can be appointed
Only Chartered Accountant
An Auditor shall hold office from the day the previous auditor cease to hold office and upto the end of the next period for appointing auditor unless re-appointed.
Any LLP which fails to comply with the requirements shall be punishable with fine which shall not be less than Rs. 25,000 but not exceeding Rs. 5,00,000. Every designated partner shall be punishable with fine which shall not be less than Rs. 10,000 but exceeding Rs. 5,00,000.
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