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Important LLP Compliance – Due Date & Penalty

An LLP is a form of legal business entity that gives the benefits of limited liability but allows its members the flexibility of organizing their internal structure as a traditional partnership. It is governed by the Limited Liability Partnership Act, 2008. In LLP, unlike a company, the designated partner have a direct relationship between owner and management.

All LLPs registered in India have to file the annual returns and statement of accounts for each Financial Year irrespective of annual revenue or profit. Hence, even a LLP that hasn’t opened a bank account or commenced business activity would have to file the following filings each year to maintain LLP compliance and avoid penalty.

Important LLP Due Dates

The following filings are mandatory for all LLPs irrespective of activity. In addition to the below, a LLP having GST registration would have to file GST returns every month.

Form	Due Date	Authority
Form – 11 (Annual Return)	3oth May	Ministry of Corporate Affairs
Form – 8 (Statement of Accounts)	30th October	Ministry of Corporate Affairs
Income Tax Return (ITR-5 Form)	31st July – If tax audit not required. 30th September – If tax audit required.	Income Tax Department

LLP Form 11

Annual return filing under form 11 is a summary of all the designated partners like whether there are any changes in the management of the LLP or not. Every LLP is required to file annual return in Form 11 to the Registrar of companies within 60 days from the closure of financial year i.e. annual return have to be filed on or before 30th May every year. Accordingly for the financial year 2017-2018, 30th May, 2018 is the last date for filing of annual return under form 11.

For the FY 2018-2019, the last day for LLPs to file Annual Return under Form 11 is the 30th of May, 2019.

LLP Form 8

Every LLP is required to prepare and close its accounts until the 31st March every year. LLP are required to maintain the Books of Accounts in Double Entry System and has to prepare a Statement of Accounts every year ending on 31st March. From 8 is to be filed, by at least two Designated Partners, with the Registrar on or before 30th October every year. Accordingly for the current financial year, 30th October, 2018 is the last date for filing statement of accounts for the financial year 2017-2018.

For the FY 2018-2019, the last day for LLPs to file annual accounts under Form 8 is the 30th of October, 2019.

Income Tax Return

Every LLP has to file Income Tax Returns every year. LLP being a separate legal entity, apart from the partner’s income tax return, you have to always file the LLP Income tax return. The last date of filing of income tax return for LLP is 31st July or 30th September, as the case may be. If LLP’s books of accounts are not required to be audited, than, due date for filing income tax return would be 31st July and if LLP is covered under tax audit i.e. books of accounts are to be audited, due date for filing Income tax return would be 30th September.

The due date to file Income Tax Return for LLPs which do not require their accounts to be audited under any law is the 31st of July, 2019.

The due date to file Income Tax Return and Audit Report for LLPs which are subject to audit under the law is the 30th of September, 2019.

Audit for LLP

The following audit by a practising Chartered Accountant would be required for a LLP.

Tax Audit

Every LLP whose turnover exceeds INR 1 Cr. in case of a business or INR 50 Lakh in case of a profession, is required to get its books of accounts tax audited under section 44AB of the Income-tax Act. Such audit will have to be completed and filed by 30th September.

LLP Act

It may be noted that only those LLP whose annual turnover exceeds Rs. 40 lakhs or whose contribution exceeds Rs. 25 lakhs are required to get their accounts audited.

Certificate from Company Secretary

In case of LLPs with turnover more than five crore rupees in a financial year or contribution more than fifty lakh rupees, the annual return filed under form 11 needs to be certified by a Company Secretary in Practice.

Penalty for Late Filing

If there is a delay in filing Form 8 and 11 of LLP, penalty of Rs. 100 per day per form is payable from the due date of filing return till the date actual return is filed.

In case of late filing income tax return, a penalty of Rs.5000 would be applicable for returns late filed between 1st August and 31st December of the assessment year. A penalty of Rs.10,000 will be applicable on return filed after 31st December of the same assessment year.

Filing LLP Compliance

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