April 19, 2024

Business Bib

Business & Finance Blog

HOW TO FILE TAX FOR AN ONLINE LLP REGISTRATION IN INDIA AND GET IT AUDITED

3 min read

An Online LLP Registration in India or Limited Liability Partnershipsare separate legal entities which make the elected partners responsible for maintaining book of accounts and filing annual returns. The book of accounts should have the information of the financial position, money received and expended, record of assets and liabilities etc.LLP tax payment can be made in physical mode through designated banks or through e-payment mode. Accounts of LLP are required to be audited. However, an LLP whose turnover in any financial year does not exceed ₹40 lakhs or the capital does not exceed ₹25 lakhs is exempt from the provisions of audit. First year, the auditor may be appointed any time before the end of the financial year. Thereafter, the auditor is to be appointed at least 30 days prior to the end of the financial year. The designated partners shall appoint the auditors.LLPs that are required to get its accounts audited are required to pay tax through e-payment mode only.The deadline for LLP to file their Statement of Account and Solvency is 30 days from the end six months of the financial year. The Annual Returns within 60 days from the end of the financial year. Non-compliance with the provisions can lead to penalty of Rupees 5 lakhs for an Online LLPincorporation in India.

  • Filing and Audit requirement under Income Tax Act

Limited Liability Partnerships whose turnover is more than INR 40 lakh or capital has exceeded INR 25 Lakh have to get the books of account audited by practicing Chartered Accountants. The deadline to file the tax return for an LLP which is required to get his books audited is September 30th. It is 31st July for LLPs where tax audit is not required.
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. Form ITR 5 need to file for income tax returns by the LLP. This form could be filed online via the income tax website with the help of the designated partner’s digital signature.

  • Filing Annual Return

 Form-11 has to be filed by the designated partners. This form is considered as the summary of management affairs of an Online  LLP registration in India, like numbers of partners along with their names. It has to be the by 30th May every year.

  • Statements of Accounts and Solvency

 LLPs are required to have their books of accounts in place and fill in data with respect to the profit made, and other financial data in regards to business in Form 8. This form needs to be submitted every year. Form 8 must be attested by the signatures of the designated partners. It needs to be certified by a practicing chartered accountant, practicing company secretary or a practicing cost accountant.

As the process is typical and failure to complete all the provisions mentioned may lead to heavy penalty on the Online LLPincorporation in India. To avoid the penalties and the pressure of such process help of Company Vakil is vital. The team is well versed with the dealing of LLP and can help the client at every step.