Good news for LLPs who have not been able to file their returns (Forms 3, 4, 8, 11)!
The MCA will soon be introducing an Amnesty Scheme for LLPs to condone delay in annual returns filings.
What does this mean for LLPs?
LLPs who delay filing Forms 3 and 4 as well as Forms 8 and 11 currently face a penalty of Rs. 100 per day of delay.
As per the new scheme, LLPs can now file their returns with an additional fee of ONLY Rs. 10 per day with a maximum cap of Rs. 5,000.
Currently, there are around 1.5 lakh Limited Liability Partnership (LLP) firms in India, of which almost 1.3 lakh are active. As per law, every LLP is required to:
- File its annual returns within 60 days from the end of the financial year
- File its Statement of Account & Solvency within 30 days from the end of six months of the close of the financial year
- File any information regarding any changes in LLP agreement with the ROC within 30 days (Form 3)
- File any information regarding notice of appointment, cessation, change in name/ address/designation of a designated partner or partner or consent to become a partner/designated partner with the ROC within 30 days (Form 4)
The Amnesty scheme will be a boon for lakhs of LLPs that have delayed filing their returns for any reason.
In addition to amnesty in fees, LLPs also have the option of proceeding before the Central Government on account of any delay in filing an application/document with the Central Government or Registrar respectively. Following this move, the penalties for late filing fees of LLP Forms 3, 8 and 11 may be condoned after the reasonable reason has been recorded (in writing).
Currently, there are many LLPs that have not filed Form 3 for 10 years or more. The penalty for such firms could be over Rs. 10 lakh. As per the soon-to-be-introduced Amnesty Scheme, these firms can clear their defaults by paying a fee of just Rs. 5,000.
The move is a welcome one for businesses, especially for those LLPs who have delayed filings due to reasons not entirely in their control. This Amnesty Scheme to condone filing delays by reducing the penalty amount is expected to help LLPs resolve the many issues they face due to non-filing of returns.
Are you the owner of or a partner in an LLP firm?
Take advantage of this Amnesty Scheme without delay!
Taxguru can help you achieve 100% compliance in filing your annual LLP returns. Get in touch with us to know more about this Amnesty Scheme!
Phone: 022-2308-0666, +91 9224618250
Email: info@mytaxguru.net Disclaimer: The information is provided purely for informational and educational purposes only. It should not be misconstrued as legal advice. Taxguru cannot take any responsibility for the result or consequences of any attempt to use or adopt any of the information presented herein