Limited Liability Partnerships gets a separate legal institution; therefore, it is the duties of the elected partners for simultaneously maintaining a proper book of accounts and filing an annual return in consonance with the Ministry of Corporate Affairs (MCA) yearly. Limited Liability Partnerships are not needed to audit their 'books of account except' where their yearly turnover is more than INR 40 lakhs or if the investment or contributions to the company is more than INR 25 lakh. Therefore, an LLP is not required to get their books of account audited if it fulfils the condition as mentioned above, making the process of annual filing simpler.
Significant Benefits: Powers enjoyed by LLPs are as follows:
1. Powers to sue and be sued.
2. Powers to open a bank account.
3. Powers to employ persons.
4. Powers to indulge into all types of legal contracts.
5. In an LLP, one partner is not accountable or liable for another partner’s misbehaviour or negligence.
6. The associates of an LLP have the right to maintain the business directly.
7. An LLP gives limited liability security for the owners.
8. If the number of Partners decreases less than 2, the sole companion can still find a new Partner to fill the space.
9. During the Post establishment, an LLP can have limitless partners.
10. If there is only one companion in an LLP, there is time to find a new one externally, and without the dissolution of the LLP also.
11. It is a separate legal existence.
12. LLPs have assets and accounts that are separate from that of the promoters.
13. An LLP can raise funds from Partners, Banks, and NBFCs.
All registered LLPs are expected to have their books of accounts in place and fill in data concerning the profit made, and other economic data in regards to sales, and submit it in Form 8, each year. Form 8 must be attested by the impressions/signatures of the designated partners and should also be certified by a practicing 'chartered accountant' or a practicing 'company secretary' or a practicing 'cost accountant.' Neglecting to file, the statement of accounts & solvency records within the designated due date will lead to a fine of INR '100' per day. The due date to submit form 8 for the financial year 2017-18 is October 30, 2018.
Annual Returns are to be submitted in the designated Form-11. This Form is to be entertained as a summary of the management affairs of LLP. These are like numbers of partners, simultaneously with their names. However, form 11 has to be filed by May 30 every year.
As explained earlier, Limited Liability Partnerships whose turnover is higher than INR 40 lakh or whose participation has exceeded INR 25 Lakh have to get the books of account audited by practicing 'Chartered Accountants.' The last date to file the tax return for an LLP, which is supposed to get his books evaluated, is September 30.
Form 11 is a Yearly return that is to be filled by all LLPs irrespective of turnover throughout the year. Even when an LLP does not convey out any services or business during the business year, Form 11 needs to be filed. Apart from Essential data about Name, Address of LLP, details of Partners/ Designated Partners, other information that need to be submitted are:
30/5/2020
The last date for filing income tax returns for LLPs, which does not require Tax Audit July 31, 2020, and
if Tax Audit is then needed due to date for IT Returns for LLP would be September 30, 2020.
LLP form 8 Due date- 30.10.2020
If there is a noticeable delay in filing Form 8 and 11 of LLP, a penalty of Rs. 100 per day per form is payable from the due date of filing return till the actual date return is filed.