Every LLP registered under The Limited Liability Act, 2008 has to furnish its annual accounts and Returns every year with in due times. There are mainly two forms to be filed Form 11 and Form 8 every year.
Annual Return of the LLP: Form 11 is to be submitted within 60 days of closure of the financial year and due on 30th May of each year. (Financial year closes on 31st March.)
Statement of Account and Solvency: Form 8 is to be submitted within 30 days from the expiry of six months from the closure of the financial year (30th October of each year).
This article covers the requirements for filing the Form 11- Annual Return. Also, we have given in brief here, the important aspects to note while filing Form 11.
What is Form 11?
Form 11 is an Annual return that is to be filled by all LLPs irrespective of turnover during the year. Even when LLP does not carry out any operations or business during the financial year, Form 11 needs to be filed. Apart from Basic information about Name, Address of LLP, details of Partners/ Designated Partners, other details that need to be declared are:
- Total contribution by/to partners of the LLP
- Details of notices received towards Penalties imposed / compounding offenses committed during the financial year
Details required before filing of Form 11
- LLPIN (Limited Liability Partnership Identification number) allotted to the LLP visible on the Incorporation Certificate is required to pre-fill the basic data related to LLP.
- Declaration about contribution/sums paid to all the partners of the LLP
- Payment of fees with respect to e-Form 4 (Notice of appointment, cessation, and change in designation of a designated partner or partner) and processing of e-form 4 should be completed (If applicable).
- Keep the DSC of your Designated Partner ready! DSC is required for signing
Document and Details required for Form 11
- LLP Identification No (LLPIN)
- Address details of Registered office
- Business Activities
- Details of Designated Partners and other partners of the LLP
- Total Obligation of partners to the LLP
- Total Contribution received by the Partners
- Details of any change with respect to designated partners during the financial year and whether the form for such change is filed or not
- Details of LLP or Company in which Partner or Designated Partner are Directors or Partners
- DSC of the Designated Partner
- Is there any compounding offences in the name of LLP
- Any other information
It is important to note that once the annual return is filed it can’t be resubmitted or revised, and the particulars of Form 11 should match with the particulars of Form 8.
Certification of Company Secretary on Form 11
Form 11 is required to be certified by a practicing Company Secretary if any of the following conditions are fulfilled:
- If the contribution of the LLP is more than Rs 50 Lakhs
- If the turnover of the LLP is more than Rs 5 Crore
Fee for filing of form 11 and Penalties of Late Filing or Non-Filing of Form-11
The Government fee for filing of Form 11 is only Rs. 50/- however there is penalty for non-filing or delayed filing of Form 11.
Earlier in case of delayed filing of form 11 penalty was imposed of Rs. 100/- each day of delay but with amendment in the Limited Liability Partnership Rules now the penalties are relaxed to some extent and are as follows: Late fee for delayed filing of E-form 8 as per new amended LLP Rules 2022 are as follows:
|S.no||Delayed period||Penalty for Small LLP||Penalty for other than Small LLP|
|1||Upto 15 days||Rs. 50||Rs. 50|
|2||More than 15 days and upto 30 days||Rs. 100||Rs. 200|
|3||More than 30 days and upto 60 days||Rs. 200||Rs. 400|
|4||More than 60 days and upto 90 days||Rs. 300||Rs. 600|
|5||More than 90 days and upto 180 days||Rs. 500||Rs. 1000|
|6||More than 180 days and upto 360 days||Rs. 750||Rs. 1500|
|7||More than 360 days||Rs. 750 + (Total days of delay – 360 days) x Rs. 10||Rs. 1500 + (Total days of delay – 360 days) x Rs. 20|
Penalty on LLP for Non-filing
A fine of Minimum Rs 25,000 is imposed on the LLP which can be extended up to Rs. 5, 00,000
Penalty for Designated Partners
All designated partners will be charged with a fine of minimum of Rs 10,000 and with a maximum cap of Rs. 1, 00,000.
Note: One can’t close or windup the LLP without closing and filing of the accounts.
Tax liability and Audit for LLP
LLP’s are taxed at a flat rate of 30% of total income earned by the LLP during the previous year. Surcharge is applicable at a rate of 10% of the tax amount calculated on the income only if exceeds Rs. 1 crore rupees However, the surcharge shall be subject to marginal relief (the total amount payable as income-tax and surcharge shall not exceed total amount payable as income-tax on total income of one crore rupees by more than the amount of income that exceeds one crore rupees). Health and educational cess is also applied on the tax calculated at a rate of 4%.
Alternate Minimum Tax (AMT) on LLP: Tax payable by LLP cannot be less than 18.5% (increased by Surcharge and HEC) of “adjusted total income” as per section 115JC.
Turnover limit of Tax Audit for the FY 2021-22 as per The Income Tax Act for LLP having a turnover of Rs. 10 Cr or above with cash transaction limit up to 5% of total turnover and in case of Professional Services audit is mandatory if the turnover is Rs. 50 lakhs or above.
Audit Section is 44 AB of Income Tax Act 1961
Appoint CA firm for Tax Audit
Due Date of Tax Audit Filing is 30 September
Due Date of Income Tax Filing 30 September
For Non Filing Penalty upto Rs.150000/-
Digital Signature is mandatory
Although it is not mandatory for every LLP to get its accounts audited if the Turnover of the LLP during the previous year is below 40 lakhs and/or the contribution is more than 25 lakhs. Thus there are two options for Income Tax on LLP, either they can opt for regular concept and the total income will be charged @ 30% or they can opt for AMT concept and the Adjusted Total Income will be taxed @ 18.5%.