Limited Liability Partnerships are separate legal entities; hence, it is the duty of the elected partners for maintaining a proper book of accounts and filing an annual return with the Ministry of Corporate Affairs (MCA) annually.
Limited Liability Partnerships are not required to audit their books of account except where their annual turnover is more than Rs.40 lakhs or if the contribution is more than Rs.25 lakh. Hence, an LLP is not required to get their books of account audited if it fulfils the above-mentioned condition, making the process of annual filing simpler.
Limited Liability Partnerships are required to file their Statement of Account & Solvency within a period of thirty (30) days from the end of six (6) months of the financial year and Annual Return within sixty (60) days from the end of the financial year.
As discussed earlier, Limited Liability Partnerships whose turnover is more than Rs.40 lakh or whose contribution has exceeded Rs.25 Lakh have to get the books of account audited by practising Chartered Accountants under the Limited Liability Partnership Act, 2008. The deadline to file the tax return for an LLP which is required to get his books audited is September 30th.
Note: The threshold limit of Rs.1 crore for a tax audit is increased to Rs.5 crore with effect from AY 2021-22 (FY 2020-21) if the taxpayer’s cash receipts are limited to 5% of the gross receipts or turnover, and if the taxpayer’s cash payments are limited to 5% of the aggregate payments under the Income Tax Act, 1961.
For LLPs where tax audit is not required deadline, the due date for tax filing is July 31st. For LLPs which have entered into any international transactions with associated enterprises or have undertaken specified Domestic Transactions, need to file Form 3CEB. This form should be certified by a practicing Chartered Accountant. Limited Liability Partnerships which are required to file this Form can do their tax filing by 30th November.