Compliance - LLP

For a Limited Liability Partnership (LLP), the returns should be filed periodically for maintaining compliance and escape heavy penalty under the law for non-compliance. A Limited Liability Partnership has only few compliances to be followed every year which is amazingly low as compared to the compliance requirements placed on the private limited companies. However, the fines seem to be quite large. Whilst non-compliance might only charge a Private Limited company INR 1 lakh in terms of penalties, it might charge an LLP up to INR 5 lakh.

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LLP Annual Check list:

 

Mandatory Compliance

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Here we are explaining about mandatory compliance that a Public limited company must comply.

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Event Based Compliances

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Event based compliances are those which gets triggered upon happening of certain events like change in directors, change of registered office, change in authorized share capital etc. Hence, it is necessary that the happening of such events get tracked and compliances met with on time in order to avoid penalties or additional fees. Some of the Event based compliances are mentioned below:

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Non Registrar Compliance

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• Payment of periodic dues (GST Liability, TDS & TCS payment)

• Monthly/Quarterly GST Returns

• Quarterly TDS Returns

• Assessment of advance tax liability and payment of advance tax periodically

• Filing of Income Tax Returns (Tax will be payable at a flat rate of 30% plus Education Cess)

• Filing of Tax Audit Report

• Regulatory Assessment of business under different acts of law (Eg. Environment and Protection Act, Money Laundering Act, Competition Act, Factory Act etc.)

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Non Compliance:

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If a LLP fails to comply with the rules and regulations of the LLP, then the LLP and every officer who is in default shall be punishable with fine for the period for which default continues.

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If there is delay in any filing, then additional fees is required to be paid, which keeps on increasing as the time period of non-compliance increases. It should be noted that some of the Annual Filing Forms can also be revised but the fees for subsequent revised filing shall be charged, assuming it as a new filing.