Annual Return of LLP

Government levies a late fee of Rs. 100 per day for each form for delay in filing till the delay continues. For continuous failure to file annual returns, ROC can remove the name of LLP from its register

• Audit under LLP Act is compulsory for LLPs only where
  • Turnover exceeds Rs. 40 Lakhs or
  • Capital contribution exceeds Rs. 25 Lakhs
• Tax Audit u/s 44AB of the Income Tax Act is compulsory if the turnover exceeds Rs. 1 crores in case of a business or Rs. 50 Lakhs in case of a profession. Last date of filing Tax Audit Report is 30th September

• Tax rate for LLPs:- 30%
• Additional Surcharge:- 12% where total income exceeds Rs. 1 crore
• Health & Education Cess:- 4% of Income Tax + Surcharge

Privileges available to LLPs:-

1. No maximum limit of partners
2. No requirement of holding Board Meetings
3. No AGM required
4. No requirement to maintain minute books

Financial year of LLPs closes on 31st March of every year. But in the first year of incorporation, such period may vary.

• If LLP is registered between 1st April and 30th September: LLP shall close its financial year on 31st March of next calendar year
• If LLP is registered between 1st October and 31st March: LLP has an option to choose the end of its financial year. For example, if the LLP is registered on 17th November 2018, it may close its financial year on 31st March 2019 or 31st March 2020