LLP settlement Scheme, 2020 for defaulting LLPs

-

LLP settlement Scheme, 2020 for defaulting LLPs

On the basis of representations received from various stakeholders for waiver of additional fee or condonation of delay and relaxations in additional fee in filling pending MCA/ROC forms w.r.t LLP, Government has come out with one-time settlement scheme vide General Circular No. 6/2020 dt. 04/03/2020 with an aim to bring non-compliant LLPs into the legal bracket.

Salient features of the scheme are as follows:

  • Name of the scheme: LLP Settlement Scheme, 2020
  • Applicability of the scheme: The scheme shall apply to pending forms which are due for filling till the date of 31/10/2019.
  • Duration of the Scheme: Scheme will be effective from 16th March, 2020 and shall remain in force up to 13th June, 2020.
  • Late fees / Additional fees payable for each form: Additional fees will be Rs. 10/- per day in delay, as compared to existing Rs. 100 /- per day in delay, subject to maximum fees for each pending form will not exceed Rs. 5,000/-
  • Defaulting LLP’s filing form under this scheme will not be subject to prosecution by registrar for such defaults.
  • Forms permitted to file under this scheme are
  1. Form 3 : Form for filling agreements and changes therein
  2. Form 4 : Form for filling changes in Partners
  3. Form 8 : Statement of Account & Solvency (Annual or Interim);
  4. Form 11 : Annual Return of Limited Liability Partnership (LLP)
  • This scheme shall not be applicable to LLP’s which have filed Form 24 for striking off the LLP
  • Consequence of non-filling of LLP forms: Due to not filing the required documents on time the LLPs and their designated partners are liable for criminal prosecution and the said LLPs cannot be closed till all compliance's are completed.
Conclusion: large number of LLPs are not filing their due statutory Documents with ROC because of huge late fees in filling of forms. i.e. 100/- per day without higher cap of late fees.

 Now, MCA is giving effective and most awaited one-time option to such defaulting LLPs to make good the defaults with payment of Rs. 10/- per day in delay subject to maximum additional fees of Rs. 5000/- per form.So, it is highly advisable to opt for the scheme and make your LLP compliant.

*This scheme has been revised : Read about revised scheme here

#Read full circular here

Popular posts from this blog

PF payment due dates for the FY 2020-21 for tax audit reporting

-
Image
PF payment due dates for the FY 2020-21 for the purpose of tax audit reporting While preparing Tax Audit Report in Form 3CD it is important to fill due date of payment to various Employees contribution fund and actual payment of the contribution. i.e  "Details of contributions received from employees for various funds as referred to in section  36(1)(va)" Most commonly reported funds under the clause are EPF and ESIC. If there is delay in the payment of the contributions of PF and ESI may result in disallowance of the payment of contribution. Here is the chart of the due dates under EPF and ESIC for the FY 2020-21 for quick reference  PF payment due dates for the FY 2020-21 Period Due date Day Extended date Reference Apr-20 15/05/2020 Friday                                -                           -   May-20 15/06/2020 Monday                  
Continue Reading

PF payment due dates for the FY 2021-22 for reporting u/s 36(1)(va)

-
Image
PF payment due dates for the FY 2021-22 for the purpose of tax audit reporting Reporting under clause 20 (b) of Form 3CD requires due dates of payment to various Employees contribution fund. i.e  "Details of contributions received from employees for various funds as referred to in section  36(1)(va) " Here " due date " means the date by which the assessee is required as an employer to credit an employee's contribution to the employee's account in the relevant fund under any Act, rule, order or notification issued thereunder or under any standing order, award, contract of service or otherwise. Most commonly reported funds under the clause 20(b) are EPF and ESIC. If there is delay in the payment of the contributions of PF and ESI result in disallowance of the payment of contribution. Here is the chart of the due dates under EPF and ESIC for the FY 2021-22 for quick reference. PF payment due dates for the FY 2021-22 Period Due date Day
Continue Reading

Format of shorter notice consent for AGM (Annual General Meeting)

-
Image
Format of shorter notice consent for AGM (Annual General Meeting) Background The Companies Act mandates companies to issue a notice to members calling a general meeting at least 21 clear days before the date of the meeting. Sometimes, the matters in urgency require quick decision making and in such circumstances, the companies may go for calling general meetings at shorter notice. However, in case of the private limited companies the period can be less than 21 days as provided in the Articles of Association (AOA). Provision and Rule As per the provisions of Section 101 (1) of the Companies Act, 2013, every general meeting of a company may be called by giving not less than twenty-one days clear notice in writing or through electronic mode in such manner as provided under Rule 18 of Companies (Management and Administration) Rules 2014. What is Consent for shorter notice? It is permission obtained by the company from its shareholders, in advance, to call a general meeting at an earlier da
Continue Reading

PF payment due dates for the FY 2022-23 for reporting u/s 36(1)(va)

-
Image
PF payment due dates for the FY 2022-23 for the purpose of tax audit reporting Reporting under clause 20 (b) of Form 3CD requires due dates of payment to various Employees contribution fund. i.e  "Details of contributions received from employees for various funds as referred to in section  36(1)(va) " Here " due date " means the date by which the assessee is required as an employer to credit an employee's contribution to the employee's account in the relevant fund under any Act, rule, order or notification issued thereunder or under any standing order, award, contract of service or otherwise. Most commonly reported funds under the clause 20(b) are EPF and ESIC. If there is delay in the payment of the contributions of PF and ESI result in disallowance of the payment of contribution. Here is the chart of the due dates under EPF and ESIC for the FY 2022-23 for quick reference. PF payment due dates for the FY 2022-23 Period Due Date Day Extended D
Continue Reading

Letter of Authority for Tax Practitioners (Income tax)

-
Image
Letter of Authority for Tax Practitioners (Income Tax) LETTER OF AUTHORITY I/We ________________ , Proprietor/Partner/Director of _______________________ , hereby authorize Mr./Mrs./CA __________________________ to appear, represent, and settle on my/our behalf the Income tax assessment proceedings before the Income Tax Officer / Assistant/Dy. / Commissioner of Income Tax or in appeal before the Appellate Assistant Commissioner of Income Tax, Commissioner of Income Tax (Appeal), or the Appellate Tribunal or the Board of Direct Taxes for the assessment year 20XX-XX . [to produce accounts and documents/statements and to receive on my/our behalf any notice or documents/statements issued in connection with the said proceedings] or/and [to apply for, obtain, and receive refund orders in respect of the said assessment (if any)] or/and [to apply for copies of the Income Tax assessment
Continue Reading