Limited Liability Partnerships (LLP) is a relatively new type of corporate entity that is a hybrid between a company and a partnership firm. LLPs registered in India must file their income tax return and MCA annual return each year irrespective of business activity, turnover or profits. In this article, we look at the important due dates for LLP annual return filing and tax return filing.
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All LLPs registered in India must file Form 11 with the Ministry of Corporate Affairs (MCA) before 30th May of each year. Form 11 contains details of the number of partners, total number of partners, total contribution received by all partners, details of body corporate as partners and summary of partners. A sample LLP Form 11 is reproduced below for reference:
LLPs must file income tax return in form ITR-5. The due date for filing income tax return for a LLP would change based on the amount of turnover the LLP recorded in the previous year and the amount of capital contribution. LLPs with an annual turnover of less than Rs. 40 lakhs in the previous financial year or LLPs where partner’s obligation of contribution is less Rs. 25 lakh must file income tax return on or before 31st July.
LLPs having a turnover of more than Rs.40 lakhs and/or partner’s capital contribution of more than Rs. 25 lakhs would have to get a tax audit. LLPs who require tax audit must file their income tax return on or before 30th September for the relevant assessment year.
All LLPs registered in India must file Form 8 with the Ministry of Corporate Affairs (MCA) before 30th October of each year. Form 8 is also known as Statement of Account & Solvency. In Form 8, the LLP must provide details of financial transactions undertaken during the financial year and position at the end of financial year. Hence, to file LLP form 8, the company must have prepared financial statements for the financial year to file the various data and information required in Form 8. A sample Form 8 is reproduced below for reference:
LLPs are subject to a stringent penalty for late filing of MCA or Income Tax returns. Failure to file Form 8 or Form 11 can lead to a penalty of Rs.100 per day per form. Hence, if a LLP fails to file Form 11, it would lead to a penalty of Rs.100 per day and if a LLP fails to file Form 8, it would lead to a penalty of Rs.200 per day.
In addition to the MCA penalty, LLPs would also be subject to penalty under the Income Tax Act for not filing returns on time. From the Assessment Year 2018-19 (1st April 2018), failure to file income tax return also incurs a penalty of Rs.5000 if the return due on July 31st if filed between August and December of the same assessment year. If an income tax return due on 31st July is filed after 31 December of the same assessment year, then a mandatory penalty of Rs.10,000 will be levied.
A LLP having GST registration must also file GST returns in addition to MCA and income tax return. The due dates for a LLP to file GST returns is the 20th of each month for GSTR 3B returns. Know more about GST return due dates.