Section: The Limited Liability Partnership Act, 2008
Purpose: To ensure compliance with applicable laws and regulations and to provide an independent assessment of the financial position of the LLP.
Applicability: Every LLP registered under the Limited Liability Partnership Act, 2008.
Timeline: LLP audit should be conducted annually, within six months from the end of the financial year (FY).
Exemption: LLPs having a turnover of less than Rs. 40 Lakhs or a contribution of less than Rs. 25 Lakhs in any financial year are exempt from audit requirements.
Penalty not doing: If an LLP fails to comply with the audit requirements, a penalty of Rs. 25,000 to Rs. 5 Lakhs may be levied on the LLP, and each designated partner may be liable to pay a penalty of Rs. 10,000 to Rs. 1 Lakh.
Due Date: Within 30 days from the date of conclusion of the audit, the LLP shall file its audit report along with the income tax return for the financial year with the Registrar of LLPs.
Forms: Form 11 and Form 8 are required to be filed by the LLP for audit purposes.
Reporting Authority: The statutory auditor appointed by the LLP will prepare and sign the audit report, and the report will be submitted to the Registrar of LLPs.
Other details: The audit report must contain a true and fair view of the LLP's financial position, profits, and losses, as well as compliance with accounting standards and applicable laws and regulations. The LLP is required to maintain proper books of account and financial statements as per the accounting standards. The auditor should be a qualified Chartered Accountant .
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