For those who are designated partners or partners in an LLP, this is the time to pull up your socks. Annual filing is here!
Coming to the matter directly,
Two forms are to be filed annually, which are:
- Form 8: Statement of Accounts and Solvency
- Form 11: Annual Return
The attachments for it are the financials (Balance Sheet & Profit and Loss Account Statement) of the LLP for the last FY. For e.g., now, the F.Y. 14-15 would be the accounting period. Filings would be done as on the year ended 31st March 2015.
The returns need to be filed mandatorily, irrespective of whether the LLP has done business or not or whether it has made profits or not.
Who has to do this Compliance?
LLPs formed (whose certificate of incorporation issue date) on or before 30th September 2014 have to file for returns for the year ending 31st March 2015.
LLP is required to file LLP Form 8 (Statement of Account & Solvency) and LLP Form 11 (Annual Return) annually. The ‘Annual Return’ is required to be filed within 60 days of close of the financial year and ‘Statement of Accounts & Solvency’ shall be filed within 30 days from the end of six months of the financial year to which it relates. So due dates are as follows for the Financial Year 2014-15-
Form 8: Statement of Accounts and Solvency – 30th October 2015
Form 11: Annual Return – 30th May 2015
Who is exempt?
Those formed post 1st October 2014 (till 31st March 2015) onwards will file returns for the year ended 31st March 2016.
Fees/Investment in compliance involved?
The statutory fees payable depends entirely on the Capital Contribution of the LLP
Professional fees for filing the two forms along with the preparation of the financials would further depend on the transactions done by the LLP + the time and effort required to prepare and file the documents.
For the bigger players!
Audit comes in when:
- Turnover of the LLP crosses 40 lakhs
- Or Who’s contribution is more than 25 lacs
Get your accounts audited by a qualified CA if your LLP touches EITHER of the limits. (Remember it is an OR provision)
Remember, an Income Tax return would be required to be filed should the LLP be doing NO business too. Therefore, mandatory requirement again!
Coming to the penalties of Late Filin of LLP Returns!
They are extremely stringent and heavy,
- Penalty for Late Filing is 100 per day (unlimited/no upper limit) till the default is made good. Therefore, due caution needs to be exercised and in time compliance is advised. (apologies for the delay in this article)
- And those think that if you don’t file the returns the LLP would turn dormant and you could close it/strike it off absolving yourself of the penalty and the compliance. Remember, to close your LLP too you would require making good the compliance first.
Prevention is better than cure, and compliance is the best prevention.