Does an LLP file a balance sheet?
An LLP does not file a company’s balance sheet in Form AOC-4. It does file a statement of assets and liabilities. That statement sits inside Form 8, the statement of account and solvency, which every LLP files by 30 October.
Which statement is filed?
Form 8 contains the statement of assets and liabilities and the statement of income and expenditure, with the designated partners’ declaration of solvency. It is due within 30 days from the end of six months of the financial year, which is 30 October. Form 11 is the annual return and is due by 30 May. It is not the balance sheet. Both forms, and the fact that an LLP holds no annual general meeting, are on the LLP annual page.
Are books required below the audit line?
Yes. Section 34 requires every LLP to maintain proper books of account on a cash or accrual basis, using the double-entry system, at its registered office. The books show assets and liabilities and the transactions of the year. Falling below the audit threshold does not remove the books, and it does not remove Form 8.
When is an audit required?
A statutory audit under the LLP Rules applies when turnover exceeds ₹40 lakh or the contribution exceeds ₹25 lakh. Either line is enough. Below both lines the accounts in Form 8 are still filed, without that audit. A tax audit under section 44AB is a separate test and can apply in a year when the LLP Rules audit does not, or the other way round.
Who pays tax on the profit?
The LLP is taxed as a firm. The rate is 30 percent, plus the health and education cess of 4 percent. Surcharge of 12 percent applies when net income exceeds ₹1 crore. The partner’s share of that profit is exempt in the partner’s hands under section 10(2A). The LLP is not a pass-through. The profit is not ignored at the LLP and taxed only in the partners’ returns. How an LLP is formed is on the LLP page.
Frequently asked questions
Four questions cover an unaudited year, Form 11, AOC-4, and the partner’s profit share.
Is Form 8 optional when there is no audit?
No. Every LLP files Form 8 by 30 October. The audit changes who signs the accounts. It does not remove the form.
Is Form 11 the balance sheet?
No. Form 11 is the annual return, due by 30 May. The statement of assets and liabilities is part of Form 8.
Does the LLP file AOC-4?
No. AOC-4 and MGT-7 are company forms. An LLP files Form 8 and Form 11.
Is the partner’s profit share taxed again?
No. The partner’s share of profit is exempt under section 10(2A). Interest and remuneration paid to a partner are not that share, and they are taxed in the partner’s hands where the Act taxes them.
Sources
Books of account are section 34 of the Limited Liability Partnership Act, 2008. Form 8 is the statement of account and solvency.