“LLP Settlement Scheme 2020”- File all pending returns with reduced additional fees- One time benefit for LLPs

0
292
Scheme

The Ministry of Corporate Affairs, Government of India has introduced the “LLP Settlement Scheme 2020” vide General Circular No. 06/2020 dated 04.03.2020 and modified the same further vide General Circular No. 13/2020 dated 30.03.2020.

The objective of introducing this Scheme is to promote ease of doing business and hence Central Government has decided to give a Onetime relaxation in additional fees to the defaulting LLPs to make good their default by filing pending documents and to serve as a compliant LLP in future.

The New LLP Settlement Scheme is effective from 1st April 2020 and shall continue until 30th September 2020.

Applicability

Any Defaulting LLP is permitted to file belated documents, which are due for filing till 31st August 2020 in accordance with the provisions of this Scheme.

Payment of Fees

The defaulting LLPs may avail of the scheme for filing documents which have not been filed
or registered in time on payment of additional fee Rs 10/- per day (instead of Rs.100/- for each day of such delay) maximum upto Rs.5,000 per document for delay in addition to the normal statutory filing fees prescribed under LLP Act and Rules thereunder.

Note-Additional fee of Rs 10 per day is payable per document and not in aggregate. Thus, if there is there is delay of 300 days for one form and 330 days for another form, then for the form where delay is 300 days, additional fee will be Rs. 3,000 and for another form where delay is for 330 days, additional fee will be Rs. 3,300.

Immunity from Prosecution

Defaulting LLPs which files pending documents till 30th September 2020 and makes good the default under the scheme will not be subjected to such prosecution.

Documents/Forms Covered

The scheme is applicable for filing the following delayed documents from the LLP Act:

    1. Form-3  Information with regards to LLP agreement and its changes, if any, made therein.
    2. Form-4 Notice of cessation, appointment, changes in name, address, consent to become a partner or designated partner and designation of a partner or designated partner.
    3. Form-8 Statement of Account and Solvency either annual or interim.
    4. Form-11 Annual Return of Limited Liability Partnership (LLP).
    5. Form-15 Notice for change of place of registered office.
    6. Form-5 Notice for Change of Name.
    7. Form-12 Form for intimating other address for Service of Documents.
    8. Form-22 Notice of intimation of Order of Court/ Tribunal/CLB/ Central Government to the Registrar
    9. Form-31 Application for Compounding of an offence.
    10. Form-23 Application for direction to Limited Liability Partnership (LLP) to change its name to the Registrar.
    11. Form-29 Notice of (A) alteration in the certificate of incorporation or registration; (B) alteration in names and addresses of any of the persons authorized to accept service on behalf of a foreign limited liability partnership (FLLP) (C) alteration in the principal place of business in India of FLLP (D) cessation to have a place of business in India

Non-Applicability

If an LLP has made an application for striking-off its name to the Registrar as per the provisions of Rule 37(1), then such LLP cannot avail benefit under this scheme.

Conclusion- On the conclusion of the Scheme, the Registrar shall take necessary action under the LLP Act, 2008 against the LLPs which have not availed this Scheme and are in default in filing of documents as required under the provisions of LLP Act, 2008 in a timely manner. Hence all defaulting LLPs has this one time opportunity to avoid penalties and reap the maximum benefit of reduced additional fees by availing this Scheme.

 

Disclaimer: This article doesn’t constitute professional advice. The author does not represent that the said information is correct and complete in all regards. The views contained in this article are personal views of the author and may change depending upon underlying facts and circumstances. Judicial and legal authorities may not subscribe to the views of author and can take different view. Readers of this article are advised to take professional advice before taking any course of action or decision. The author does not assume any responsibility or liability in respect of the information contained in this article or for any decision/ course of action readers may take based on information contained in this article.

Print Friendly, PDF & Email
  • Do you have any pending Income tax litigation and need a Legal Opinion?

    Here are simple steps you can follow:

    1. Signup and Login on itatorders.in
    2. Once logged in, Submit all the relevant documentsof the case on our website by placing an order at https://www.itatorders.in/case-research and select the Category as “Legal Opinion”
    3. Select “Pay Later” and Checkout
    4. Get a Free consultation Call from one of our Legal partners and make Payment online only when you wish to proceed.
    5. Within 4-7 working days, get the deliverables in the form of favorable Case Laws applicable to your issue along with Notes prepared by our team of Legal experts.