Partnership Firm Compliance

Partnership firms are needed to continue compliance like LLPs and Companies incorporated in India. Partnership firm compliance incorporates filing of income tax return while corporate bodies like Company and LLP need both income tax return filing with the Income Tax Department and annual return filing with the Ministry of Corporate Affairs. Partnership firms that are having annual turnover of more than Rs.100 lakhs are also necessary to get a tax audit.

Besides basic compliance, partnership firms may also be needed to follow GST regulations, TDS regulations, VAT or CST regulations, ESI regulations, service tax regulations and others. The compliance of a business depends on the kind of industry, entity, state of incorporation, sales turnover and number of employees.

One Click Business Solutions is the largest business services provider in India. We offer a variety of services like partnership firm compliance, LLP registration, trademark filing, GST registration, income tax filing and others. We at One Click Business Solutions can help you managing compliance of your partnership firm. Feel free to contact us for partnership compliance maintenance through with our experienced and learned professionals.

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Major Compliances for a Partnership Firm

GST Filing – Under the GST rule, partnership firms having GST registration need to file monthly, quarterly and annual GST returns.

Income Tax Filing – Income tax filing should be filed by all partnership firms. Partnership firms having more than Rs.100 lakhs of annual turnover are needed to perform tax audit.

TDS Filing – Quarterly TDS returns should be filed by partnership firms having TAN and are needed to deduct tax at source according to TDS rules.

TDS Filing – Quarterly TDS returns should be filed by partnership firms having TAN and are needed to deduct tax at source according to TDS rules.

ESI Return – ESI return needs to be filed by all partnership firms which are having ESI registration. ESI registration is necessary once the partnership firm has more than 10 employees.

Tax Audit for Partnership Firm

An audit would be needed for a partnership firm if the total sales turnover is more than Rs.1 crore during the financial year. In case of a professional firm, audit would be necessary if total gross receipts exceed Rs.50 lakhs throughout the financial year under assessment.

Due Date for Partnership Firm Tax Return

Income tax return of a partnership firm that doesn’t need audit is due on 31st July. If the income tax return of a partnership firm is to be audited according to Income Tax Act, then the return would be unpaid on 30th September.

Most Important Compliances for a Partnership Firm

Committed Advisor

Your partnership firm will be allocated a committed Compliance advisor who will be a single point of contact to offer assistance for you and manage the compliance for the partnership. You can get in touch with him at anytime and get help on topics related to your partnership compliance.

Accounting

Partnership firms needs to maintain accounts and make financial statements at the end of each financial year. We have dedicated compliance advisor to help maintaining accounts and also making financial statement for your partnership firm at the end of financial year.

Income Tax Return Filing

Income tax return of a partnership firm needs to be filed at the end of each financial year. Based on the type of business activity, compliance advisor will prepare all the documents and file tax return for your partnership firm.

GST Return Filing

GST return is required to be filed by all entities having GST registration. If your partnership firm has GST registration, we can help you filing GST returns.

Filing TDS Return

TDS return should be filed by all entities that are required to deduct tax at source and possess TAN registration. If your partnership firm possesses TAN registration, we can help filing TDS return also.

Documents Needed

 Invoices for purchase or sale

 Invoices for expenditure

 Credit Card Statements when expenses are incurred by Partner for the Firm

 Copy of TDS challans deposited

 Copy of TDS Returns

 Bank Statement from 1st April to 31st March of the pertinent Financial Year for all bank accounts of the Firm

 Any other relevant documents, if needed

Process of ITR file for a Partnership Firm

 Step 1 – Documentation

 Step 2 – GST Returns

 Step 3 – TDS Returns

 Step 4 – Finalization of Balance Sheet

 Step 5 – Income Tax Return

 Step 6 – Tax Audit

Rate of Income Tax for Partnership Firm

 A partnership firm (including LLP) is taxable at 30%.

 In addition :

 Surcharge – 12% of tax where total income is more than Rs. 1 crore

 Health and Education cess – 4% of income tax plus surcharge