HARISH KUMAR S

Company Secretary

ANNUALLY COMPLIANCE OF A LIMITED LIABILITY PARTNERSHIP

&
FORMS TO BE FILED WITH THE REGISTRAR
***********

All Limited Liability Partnerships (here in after referred to as LLP) shall be under obligation to
maintain annual accounts reflecting true and fair view of its state of affairs. Every Limited
Liability Partnership (LLP) is required to file LLP Form-8 (Statement of Account & Solvency), LLP
Form-11 (Annual Return) and ITR-5 (Income Tax Returns) annually. The statutory fees for filing
Form 8 & 11 will depend upon the capital contribution of the LLP.

Every LLP Registered on or before 30th September 2016 have to file returns for the financial
year ending 31st March 2017.

Filing of Returns with Registrar for LLPs registered on or after 1st October 2017 will fall only in
the year 2018.

However, every LLP registered on or after 1st October 2016 and before 31st March 2017 have to
file the Income Tax return with the Income Tax Authorities.

Filing of returns is mandatory and every LLP have to maintain the compliance irrespective of
whether they are doing the business or not. The reason is simple you know that you are not
doing the business but Government doesnt know that, so through the annual statement or
filings you are giving information to the Government about your organization.

Audit Requirement under LLP Act: Only those LLP whose annual turnover exceeds Rs. 40 lakhs
or whose contribution exceeds Rs. 25 lakhs are required to get their accounts audited by a
qualified Chartered Accountant Section 34(4) of the Limited Liability Partnership Act.

Audit Requirement under Income Tax Act: Audit of accounts is mandatory requirement under
Income Tax Act when the annual turnover of LLP is more than one hundred lakhs rupees.

Certifications from PCS: 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 (Form-11) has to be certified
by a Company Secretary in Practice.

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 HARISH KUMAR S
Company Secretary

1. Filing Annual Return:

Annual Return or Form-11 is a summary of LLPs Partners like whether there is any change in the
management of the LLP. Every LLP is required to file Annual Return in Form-11 to the Registrar
within 60 days from the closure of financial year i.e., the Annual Returns has to be filed on or
before 30th May every year. i.e., 30th May 2017 is the last date for filing annual Returns this
year Section 35 (1) of the Limited Liability Partnership Act.

2. Filing of Statement of Accounts & Solvency (Annual Accounts):

According to Section 34 (1) of the Limited Liability Partnership Act, every LLP has to maintain
proper books of account as prescribed in the Act relating to its affairs for each year of its
existence on cash basis or accrual basis and according to Double Entry System of accounting and
shall maintain the same at its registered office.

Further with reference to sub section (2) every LLP shall, within a period of six months from the
end of each financial year, prepare a Statement of Account and Solvency for the said financial
year as at the last day of the said financial year in such form as may be prescribed, and such
statement shall be signed by the designated partners of the LLP.

Every LLP is required to file Form-8 to the Registrar within 60 days from the end of six months of
financial year i.e. on or before 30th October every year. 30th October 2017 is the last date for
filing annual accounts this year (Financial Year 2016-17) Section 34 (3) of the Limited Liability
Partnership Act.

3. Filing Income Tax Returns:

In case where Audit is required, the last date for filing Income Tax returns is 30th September
2017 and wherein companies which do not fall under the Audit requirement criteria will have to
file Income tax returns on or before 31st July 2017.

If the LLP has not carried any business during the year ended 31st March 2017, the LLP has to
file a NIL IT RETURN with Income Tax Authorities before 31st July 2017.

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 HARISH KUMAR S
Company Secretary

The Following are the Returns to be filed by an LLP for the year ended 31st March, 2017.

A REGISTRAR OF LLP Last date for filing

1 Annual Return (Form-11) 30th May 2017
2 Accounts (Form-8) 30th October 2017

B INCOME TAX RETURN Last date for filing

1 In case Audit is not required 31st July 2017
2 In Case Audit is required 30th September 2017

4. DSC Requirements:

While uploading e-forms Digital Signatures of any 2 Designated Partners are required for filings.

6. Penalty for Non-Filing:

If there is delay in filing Form-8 and Form-11 of LLP, you will have to pay penalty as applicable
on todays date. If filing is not done within stipulated time, there is penalty of Rs. 100 per day
till it is complied/the default is made good (the penalty is unlimited / there is no upper limit).
You cannot close or wind up your LLP without filing Annual Accounts.

So if you dont file on time, your LLP turns into unlimited statutory liability till the day it is
complied. And those who think that if you dont file the returns the LLP would turn dormant
and you could close it / strike it off absolving yourself of the penalty and the compliance,
remember to close your LLP too you would require to make good the compliance first.

The LLP Act contains provisions for compounding of offences which are punishable with fine
only. Further, for defaults/non-compliance on procedural matters such as time limits for filing
requirements provisions have been made for charging default fees (on daily basis) in
nondiscretionary manner.

To avoid all the dangerous consequences of heavy penalty, it would be advisable to comply on
time within stipulated due date of filing.

Harish Kumar S
Company Secretary

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 HARISH KUMAR S
Company Secretary

Disclaimer:

1. The sole intention of this email / document is to educate the stakeholders about the
provision of the Limited Liability Partnership Act and its timely compliance / good
corporate practice and do not intent to promote or market any services.
2. The entire contents of this document have been prepared on the basis of relevant
provisions and as per the information existing at the time of the preparation. Though
utmost efforts has made to provide authentic information, it is suggested that to have
better understanding kindly cross-check the relevant sections, rules under the Limited
Liability Partnership Act, 2008, Income Tax Act, Rules, Regulations and all other Acts
applicable to LLP. The observations of the author are personal view and this cannot be
quoted before any authority without the written consent of the author.

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