The LLP Act, 2008 MCA/Tax Filings

LLP Filing Compliances

After your LLP gets registered, you must file your LLP's Master Agreement with MCA.

The regular Filings with LLP are: Roc compliance and MCA.

The Income-tax return, & Roc return along with partner KYC must be filed irrespective of the business turnover.

Below mentioned are the periodical returns to be filed by  LLP.

These have been bifurcated as Income-tax Filings and then Roc/MCA.

LLP Roc filings

Your registered LLP has been registered under LLP Act 2008. and the LLP has been regulated by the Ministry of corporate affairs (MCA); you shall file your LLP annual returns and financials with MCA every year.

Below are the Roc filing e-forms:

Form 8 Financial statements

Form 8 is the accounts statement, and You shall file the solvency report every year on or before 30th October.

The revised-late fee for non-filing MCA form 8 is Rs.10 per day for small LLPs and Rs.20 per day for other LLPs.

Form 11 Annual return

Form 11 is an annual return that you must file irrespective of your business turnover. Its due date for filing with Mca is 30th May of every year.

The revised-late fee for non-filing Mca form 11 is Rs.10 per day for small LLPs and Rs.20 per day for other LLPs.

LLP Partners KYC update

Each designated Partner must have the Directorship number (DPIN). The DPIN holder must file their KYC each year with MCA.

The due date for filing partner KYC is on or before 30th September. The late fee for Partner KYC is Rs.5000 per DPIN.

LLP changes update

If any changes in the LLP agreement like, capital class, partners update, objective change etc.

Then you must file LLP’s supplementary Agreement within 30 days from the date of event.

The changes can be filed using the LLP form-3 and Form- 4 (form 4 is a linked form available post filling the Form-3).

Any changes in the LLP business must be updated to ROC with a suitable amendment in the Agreement.

LLP Income tax ITR filings

The Income tax department has made the rules for tax filing a must for all LLPs in India.

Your LLP shall file its income return in the form of ITR-5 every year on or before 30th September,

Today, LLP tax on its net profit is at 30%, after adjusting partners' Salary, interest expenses, etc.

Your LLP tax return or ITR must be filed irrespective of your profit or Loss.

LLP Audit

In your LLP business, if the turnover crosses Rs.40 Lac a year or your LLP partner capital contribution exceeds Rs.25 Lac a year, you must get your LLP books of accounts audited by a statutory auditor.

If your business is below the above Limit, then no Audit applies. You can certify your books of accounts for filing with ROC and income tax.

Changes in the LLP rules

As per changes in the LLP rules, only the working Partner of the LLP can get a salary from your LLP firm.

Also, You must record any interest payments or pay to the Partner's capital account in the LLP agreement itself.

LLP Act has registered your LLP, and your LLP has been controlled by the Ministry of corporate affairs (MCA); you shall file with every-year annual return and financials.

The Limit on the LLP's partner salary is the same as per Partnership Act, the slab given below:

On the first Rs.3 Lac of your business profit, you can pay a maximum of Rs.1.5 Lac salary or 90%, whichever is higher.

On balance, you can make 60% as a salary to partners.

For example, if your LLP business net profit is only Rs.1 Lac or your LLP is under Loss, then you can make your Partner's Salary only Rs.1.5 Lac.

LLP partner's salary payment comes under TDS section 92B only.

LLP partners can get Salary, interest on their capital investment up to 12%, and profit share from LLP.

Partners' profit from LLP is tax-free.

LLP is one of the best platforms to run your Legal services or tax advisory etc., the main reason is the risk under LLP has been limited to the partner contribution, and also it safeguards the partner from any misuse or misrepresentation of the firm by other partners without the consent of the majority of the partners.