ROC Compliance of LLP

It is required for all LLP to maintain proper books of accounting relating to its business at all times. These accounting books shall contain –

Cash Transactions
Accrual Transactions
All the accounting books must be maintained as per the double entry accounting system at the registered office. For those LLPs whose turnover is more than Rupees 40 lakhs or have capital of over Rupees 25 lakhs, the accounts need to be audited by a Chartered Accountant every year. 

Any LLP (Limited Liability Partner), which does not abide by the provisions of Act are punishable with a penalty of at least Rs. 25,000 that can go to maximum Rs. 5,00,000. Additional to this, the designated partner can be punished with a fine of Rs. 10,000 followed by Rs. 1,00,000 for non-compliance. You should have proper details related to ROC compliance for LLP.

In India, LLPs must file their LLP filing/LLP annual filing within 60 days from the end of the relevant financial year. The Statement of Accounts & Solvency must be filed within 30 days starting from the end of six months of the closure of the relevant financial year. 

All LLPs must maintain their financial year as 1st April of the relevant year to 31st March of the relevant year. Consequently, the annual filing of LLP (ROC compliance of LLP) is due on 30th May of the financial year and the Statement of Accounts & Solvency is due on 30th October of every financial year. Every LLP (Limited Liability Partner) has to file two types of MCA annual filing return/ROC compliance every financial year namely Form 8 & Form 11.

Form 8 must be filed within 30 days along with the prescribed fee, from the end of six months of every financial year for maintaining the Compliance for LLP. The form must be digitally signed by two elected partners that are certified by a CA/CS/Cost Accountant. We have a panel of professionals which are rendering CA Services Online at LegalPillers. However Form 8 has two divisions –

Part A consists Statement of Solvency
Part B consists Statement of Accounts, Income & Expenditure Statement
This Form if not filed on time, can attract a penalty of Rs. 100 per day until compiled. So do not avoid LLP annual filing due date and make it complaint.

Form 11 should be filed within 60 days along with the prescribed fee, from the closure of the financial year to making LLP compliances. The LLP annual filing due date in-respect of Form 11 is 30th May of every year. Mentioned below are the details contained in Form 11 –

Number of Partners
Total Number of Partners
Total Contribution received by all Partners
Details of Corporate Body as Partners
Summary of Partners
Any LLP cannot be closed until all the annual returns are filed, making it important to file an LLP annual return periodically to maintain ROC compliance of LLP/annual compliance for LLP and escape the heavy penalties under the law of non-compliance. A relief to LLPs is that they have less compliance to be followed every financial year as compared to the Private Limited & OPC companies. However, the fines and penalties for LLPs are quite high.

Important Point to remember: If an LLP is registered on or after 1st October of any relevant year, in that case, Form 11 and Form 8 are not required for the financial year ending on the relevant year. Nevertheless, Income Tax returns are applicable and must be filed. You will get a small relation re4lated to financial year extension for making ROC Compliance of LLP. 3. 

LLP Audit requirement under the Income Tax Act

As we have already discussed above, Limited Liability Partners, whose turnover is above Rs. 40 lakhs and whose contribution exceeds Rs. 25 lakhs, need to get their accounting books audited by a practicing Chartered Accountant or a firm.

 The deadline for the ROC annual filing of tax returns for such LLP is 30th September of every financial year. PLEASE NOTE:The opening limit of Rupees 1 Crore, for a tax audit is proposed to increase up to Rupees 5 Crore, effective from Assessment Year 2021-22 (FY 2020-21). This is applicable if the taxpayer’s cash receipts are limited to 5% of the gross turnover, and if the taxpayer’s cash payments are limited to 5% of the aggregate payments. 

Those LLPs whose Tax Audit is not required, the deadline for tax filing due date/LLP annual filing due date in respect of tax filing is 31st July of the relevant assessment year. Those LLPs who have entered in any international transactions with associated enterprises need to file Form 3CEB. This is also applicable for LLPs who have taken on specified domestic transactions. 

The LLPs who have to file this particular Form need to do tax filing by 30th November of the relevant financial year. The Form needs to be certified by a practicing Chartered Accountant. The LLPs also need to file their respective Income Tax returns through Form ITR 5. This Form can be filed online through the Income Tax Website along with the designated partner’s digital signature. You
4. Income Tax Return Filing for LLP

All the LLPs that are registered in India need to file their Income Tax return for every financial year, irrespective of any profit or revenue. This means that even those LLPs that are inactive and have not undergone any transaction must file their Income Tax return every year.LLP filing/ROC Compliance of LLP is mandatory in all respect.

All the LLPs that are registered in India need to file their Income Tax return for every financial year, irrespective of any profit or revenue. This means that even those LLPs that are inactive and have not undergone any transaction must file their Income Tax return every year.LLP filing/ROC Compliance of LLP is mandatory in all respect.

All LLPs in India need to maintain the following documents –

Document of Incorporation
Names of Partners
Names of Changed Partners (If Any)
Proof of Fee Payments
Statement of Accounts & Solvency
Annual Return filed by LLP with the ROC at the registered office
All the above records should be ready at all times and must be made available for inspection at any time at the request of the concerned authority.