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:
- At any time for the first financial year but before the end of the Financial Year.
- Within 30 days before the end of the Financial Year.
- To fill a casual vacancy in the office of auditor.
- To fill up the vacancy caused by removal of 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
Holding Office
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.
Penalty
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.
(Author can be reached at shivani@akvassociate.com)
Is any ROC form to be filed in case of appointment of auditor for a LLP like ADT-1 which is applicable for Companies?
So, for the first FY – BEFORE 31 ST MARCH..?
under which section of LLP Act,2008 the statutory audit of an LLP will conduct. I am not asking for Tax audit of LLP.
Please guide me.
our capital contribution is very less and turnover is also less than mentioned limits. w have not appointed auditor yet. it has been more than an a year since we incorporated, but haven’t started any business yet. however, we have filed form 8 and form 11. in this case we dont have to appoint auditor right? please advise… second thing: we are not sure whether we filed e form-3. is there a way to check this? please advise…
May I know the limit for llp also increased for audit..