A Limited Liability Partnership only needs to follow a few rules every year, which is a lot less than what a private limited company needs to do. But the fines seem to be really big. If an LLP doesn’t follow the rules, it could get fined up to five times as much as a private limited company.
Unlike companies, LLPs in India have to file their Annual Return within 60 days of the end of the financial year and their Statement of Account and Solvency within 30 days of the end of the six-month period. We offer a full LLP compliance service, which includes filing the LLP Annual Return and the LLP Income Tax Return, for a very low price.
Maintaining Books of Accounts for an LLP
In a company, the books of accounts have to be kept on an accrual basis, but an LLP can choose whether to keep its books on a cash basis or an accrual basis.
The book of accounts must be kept at the Registered Office of the LLP. It must list all of the money that was received and spent, as well as assets and liabilities, a statement of COGS, inventories, and a statement of finished goods. At the end of every financial year, all LLPs must make their financial statements and file them with the ROC within 6 months.
Tax Audit For an LLP
If a LLP in India has an annual turnover of more than INR 40 lakhs or a contribution of more than INR 25 lakhs, its books must be checked by a practising Chartered Accountant.
In order to avail the exemption from audit, the LLPs accounts filed with the ROC must contain a statement by the Partners to the effect that the Partners acknowledge their responsibilities for complying with the requirements with respect to accounting and preparation of financial statements.
Income Tax Return Filing of an LLP
LLPs must use Form ITR 5 to file their income tax return. If there is no need for a tax audit, LLPs in India have until July 31 to file their income tax returns. If an audit is done by a practising Chartered Accountant, an LLP has until September 30 to file its income tax return.
CHARGES FOR LLP ANNUAL FILING COMPLIANCE
