Annual Compliances of Partnership Firm- Online Process
In partnership firm partners have unlimited liability if the profit of the firm is not sufficient to settle their losses than they are liable by their personal assets.
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Partnership:
Partnership firm is a form of association of two or more persons to carry the business and share the profit as per agreed ratio. Registration of partnership firm is voluntary in nature. Partnership firm governed by Indian Partnership Act,1932.
The partnership business includes any kind of profession, trade and occupation. As compared to companies, partnership firm is easy to form with fewer compliances. All the partners of the partnership firm share the profits and losses in proportion of their respective owners, or as agreed between them.
- As per the provision of Income Tax Act, it is mandatory to all Partnership Firm to get its books of accounts audited by Practicing Chartered Accountant in these conditions are under as follows:
- If total sales, turnover or gross receipts exceeds Rs. 1 Crore in any previous year, in case of business;
Above provision is not applicable to the person, who opts for presumptive taxation Scheme under Section 44AD and his total sales or turnover does not exceed Rs 2 crores.
- In any previous year, if total gross receipt of professional firm exceed Rs 50 lakhs.
The threshold limit will be amended as applicable to the Assessment Year.
Partnership firms are required to file IT return in form ITR 5.
- Business whose annual turnover exceeds Rs. 20 lakhs ( Rs.10 lakhs for special category states or Rs. 40 lakhs exclusive dealing in Goods) Goods and services tax(GST) registration is required.
For certain businesses such as Export-Import, E-commerce, and Market Place Aggregator, GST registration is mandatory.
GST returns firms have to file monthly, quarterly as well as annual GST returns.
- If tax audit is not required in Partnership firm then it must file the ITR by 31st
- If tax audit is required in Partnership firm then it must file the ITR by 30th of September.
As per the provision of Income Tax Act, it is mandatory to all Partnership Firm to get its books of accounts audited by Practicing Chartered Accountant in these conditions are under as follows:
- If total sales, turnover or gross receipts exceeds Rs. 1 Crore in any previous year, in case of business;
Note: Provided that this section is not applicable to the person, who opts for presumptive taxation Scheme under Section 44AD and his total sales or turnover does not exceed Rs 2 crores.
- If total gross receipt of professional firm exceed Rs 50 lakhs in any previous year.
The threshold limit will be amended as applicable to the Assessment Year
Partnership firms are required to file income tax return in form ITR 5.
- Invoices of sales and purchases during financial year i.e. from 1st April to 31st March
- Invoices of expenditure
- Bank statement
- Copy of TDS Return filed
- Copy of GST Return filed
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Basic Features to Read before starting private limited company
Private company is required to add the word “Private limited” or “Pvt. Ltd.” to end of its name. Private company should have at least two member and two directors. Private company have right to issue debentures to any number of persons.
Features of Public Limited Company
MCA provides the facility for incorporation of public limited company. For incorporation, firstly apply for name through RUN (Reserve Unique Name) on MCA portal. After availability of name from ROC we should file incorporation form i.e. Spice 32, INC 33(for eMOA), INC 34(for eAOA), .
