Essential Annual Compliance for LLPs in India: Filing LLP Form 8 & TDS Deadlines

As a Limited Liability Partnership (LLP) registered in India, annual compliance is not just a best practice; it’s a legal requirement. Among the critical filings, LLP Form 8, also known as the Statement of Account & Solvency, is a mandatory filing that must be completed regardless of the LLP’s turnover. Additionally, the timely submission of TDS and TCS statements ensures your LLP remains compliant with taxation rules, thereby avoiding penalties and fostering smooth business operations.

In this guide, we’ll cover the details and deadlines for filing LLP Form 8, along with key TDS obligations, including sections 194-IA, 194-IB, 194M, and 194S.

Understanding LLP Form 8: Statement of Account & Solvency

What is LLP Form 8?

LLP Form 8 is an annual compliance form submitted to the Ministry of Corporate Affairs (MCA). This form serves as a statement of your LLP’s financial health and stability, confirming that the LLP is solvent and able to meet its liabilities. Regardless of an LLP’s turnover, filing Form 8 is mandatory, as it not only declares the LLP’s financials but also acts as a legal acknowledgment of its financial accountability.

Key Components of LLP Form 8

Statement of Solvency: Declares the LLP’s ability to meet its debts.
Statement of Assets and Liabilities: Provides a detailed account of the LLP’s financial position.
Income and Expenditure Statement: Captures the LLP’s profitability and loss for the fiscal year.

When to File LLP Form 8?

The due date for filing LLP Form 8 each year is October 30 for the previous fiscal year. Failure to submit Form 8 by this deadline can result in substantial penalties, including late fees charged on a per-day basis.

Penalties for Late Filing

The penalty for failing to file LLP Form 8 on time is ₹100 per day until the filing is complete. This penalty accrues daily, with no maximum cap, making timely submission crucial to avoid a mounting penalty.

Key TDS & TCS Compliance Deadlines for September 2024

In addition to LLP Form 8, all businesses must comply with TDS (Tax Deducted at Source) and TCS (Tax Collected at Source) requirements, especially for specific sections under the Income Tax Act. Ensuring timely submission of TDS and TCS statements protects your LLP from tax complications and supports efficient business operations.

Section 194-IA, 194-IB, 194M, and 194S: TDS Obligations

Due Date for Challan-Cum-Statement Submission:

Due Date for Challan-Cum-Statement Submission:
The TDS under sections 194-IA, 194-IB, 194M, and 194S for the month of September 2024 must be submitted by October 7, 2024. Here’s a quick overview of each section:

Section 194-IA: TDS on transfer of immovable property.
Section 194-IB: TDS on rent paid by certain individuals and HUFs.
Section 194M: TDS on payments to contractors and professionals.
Section 194S: TDS on transactions involving virtual digital assets (VDAs).

Quarterly TCS Certificate for Q2 (Ending September 30, 2024)

For businesses collecting tax at source, the Quarterly TCS Certificate must be issued for the quarter ending September 30, 2024. This certificate helps maintain transparency with those from whom the tax is collected and keeps tax authorities informed about collected tax details.

Due Date for Issuing TCS Certificate:
The TCS certificate for the quarter ending September 2024 must be issued by October 15, 2024.

Steps to Ensure Timely Compliance with LLP Form 8 and TDS/TCS Filings

Plan and Organize Financial Statements:
Start compiling all financial data, including income, expenditures, assets, and liabilities well in advance. This minimizes errors and provides ample time to verify the accuracy of the information.
Collaborate with a Professional:
Working with a professional accounting or tax consulting firm, such as Power of Factorial Business Solutions, can streamline the filing process and ensure all compliance requirements are met. With experience in LLP compliance and TDS filings, professional consultants can handle the paperwork and guide you through regulatory specifics.
Leverage Digital Platforms for Filing:
Utilize the MCA’s e-filing portal to submit LLP Form 8 and the TDS/TCS submission portal for tax-related filings. Digital submissions are often faster and offer immediate confirmation of receipt.
Set Reminders for Deadlines:
Establish a compliance calendar with reminders for critical filing deadlines to avoid late fees and penalties.

How Power of Factorial Business Solutions Can Help

Staying compliant with government regulations requires expertise, precision, and a commitment to deadlines. At Power of Factorial Business Solutions, we specialize in corporate compliance, tax filings, and accounting services for LLPs, ensuring you stay compliant and focused on growth.

Let us assist you in managing all compliance needs, from LLP Form 8 filings to TDS and TCS submissions. Contact us today to secure peace of mind and stay compliant effortlessly!

📞 +91 8105021287
📧 poweroffactorial024@gmail.com
📍 K R Puram, Bangalore