LLP Annual Filing

A Limited Liability Partnership enjoys a separate status. Thus, an organization needs to maintain its active status by regularly filing with the Ministry of Corporate Affairs (MCA). Annual compliance filing is mandatory for any LLP, whether having a business or not. Annual compliance for LLP requires filing two separate forms. One of which is for Annual Return, whereas another one is for Statement of Accounts and Solvency.

The forms are filed for reporting the activities and financial data for each financial year in the upcoming year. The failure to fulfill LLP Annual Compliance requirements levies an additional fee of ₹ 100 each day of a delay till the actual date of filing. Hence, apart from the mandate, the heavy penalty compels the Designated Partners to fulfill the requirements.

WHAT ARE THE KEY COMPONENTS OF LLP ANNUAL COMPLIANCE?

The requirements of annual compliance of an LLP are specified under the Limited Liability Partnership Act 2008.
Given below are the important annual compliances in case of an LLP:

Preparation of financial accounts
Preparation of financial accounts
All LLPs registered under LLP Act 2008 are required to prepare a Statement of Account and Solvency, through the filling of Form 8.

Annual return
As per Section 35 of LLP Act, every LLP has to file the annual return within 60 days of closure of the financial year. This is prepared by filling of Form 11.

Statutory Audit by an Independent Auditor
Statutory Audit is mandatory for LLP only if its annual turnover exceeds INR 40 lakh and/or its total paid-up capital exceeds INR 25 lakh.

Income Tax Return Filing & Tax Audit
According to the Income Tax Act, the filing of Income Tax Return is mandatory for an LLP. If the annual turnover of an LLP exceeds INR 60 Lakhs, it will be applicable for a tax audit.

The income tax rate applicable for LLPs registered in India is 30% of the total income. Besides the income tax, a surcharge is levied on the income of the tax payable at the rate of 12% when the total income is exceeding Rs.1 crore.

Health & Education Cess

Health and Education cess of 4% is applicable on the amount of income tax and the applicable surcharge.

Minimum Alternate Tax (MAT) for LLP

Similar to income tax applicable for a company, LLP is also subject to minimum alternate tax. A minimum alternate tax of 18.5% of adjusted total income is applicable for LLP. Hence, income tax payable by LLP cannot be less than 18.5 percent (increased by income tax surcharge, education cess, and secondary and higher education cess).

LLPs Involved in International Transaction

LLPs that entered into an international transaction with associated enterprises or undertook certain Specified Domestic Transactions are required to file Form 3CEB. Form 3CEB must be certified by a Chartered Accountant. LLPs required to file Form 3CEB have 3oth November as the deadline for LLP tax filing.