LLP Form 8 and Maintenance of Books of A/c

Maintenance of Books of Account and Statement of Account and Solvency

LLP Form 8

Maintenance of Books of account by a Limited Liability Partnership:

Statement of Account and Solvency:

  • Every LLP should maintain proper books of account relating to its affairs each year.
  • Accounts should be maintained on cash basis or accrual basis and according to double entry system of accounting.
  • Accounts to be maintained at the registered office for such period as may be prescribed.
  • Every LLP shall within a period of six months from the end of financial year, prepare a Statement of Account and Solvency for the F.Y. as at the last day of the F.Y. in Form 8 and shall be signed by designated partners of the LLP 
  • Every LLP shall file the Statement of Account and Solvency with the Registrar in Form 8 within thirty days from the end of six months of the financial year to which the Statement of Account and Solvency relates. 
  • The accounts of limited liability partnerships shall be audited*
  • The books of account which a limited liability partnership is required to keep shall be preserved for eight years from the date on which they are made
  • Where the corporate insolvency resolution process has been initiated against the LLP under  the Insolvency and Bankruptcy Code, 2016 or LLP has come under liquidation, the aforesaid Statement may be signed by interim resolution professional or resolution professional, or liquidator or limited liability partnership administrator.
  • A person shall not be qualified for appointment as an auditor of a limited liability partnership unless he is a Chartered Accountant in practice.

*Provided that a limited liability partnership whose turnover does not exceed, in any financial year, forty lakh rupees, or whose contribution does not exceed twenty-five lakh rupees shall not be required to get its accounts audited

Penalty:

For non-filing of return within prescribed period , LLP and designated partner shall be liable to penalty of Rs. 100/- per day of default subject to max Rs. 1 lakh for LLP and Rs. 50000/- for designated partners.

  • Due Date for maintenance of accounts: By September 30 of each year.
  • Due date for filing of Statement of Solvency: By October 30 of each year.

Penalty:

For non-compliance of Section 34(1),(2),(4), LLP shall be punishable with a fine of not less than Rs. 25000/-which may extend to Rs. 5 Lakhs and every designated partner and LLP shall be punishable with fine of not less than Rs. 10000/- which may extend to Rs. 1 lakh.

For failure to file the Statement of Solvency with the Registrar, the LLP and the designated partners shall be liable to a penalty of one hundred rupees for each day during which such failure continues, subject to a maximum of one lakh rupees for the limited liability partnership and fifty thousand rupees for every designated partner.

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