How an LLP should take benefit of the LLP Settlement Scheme, 2020


Introduction:

On the 4th day of February, MCA issued a General Circular with the subject LLP settlement scheme, 2020.

This scheme is basically for those LLPs which have not filed their returns which were due to file with the RoC and for the purpose of this scheme, these LLPs are called "Defaulting LLP".

So, if they go to file their pending returns/eforms then there shall be heavy additional fees levied. But now Government has introduced the scheme for condation of delay.In this scheme, the defaulting LLPs can file their pending return with a Onetime relaxation of Additional fees

So, LLPs get ready to clear all your pending returns as this scheme will save your cost to a much extent.

But, before you proceed further, you should be knowing some important points regarding this scheme.

1. Commencement:

The scheme will start from 16th March and available till 13th June, 2020.

2. Applicability:

 Any "Defaulting LLP" is permitted to file belated documents, which were due for filing till 31st October, 2019 under this Scheme.

If the return belongs to post 31st October, 2019 then this scheme is not available.

3. How to pay the fees:

 The defaulting LLPs can pay additional fees in the following manner:

Rs.  10/- per day from the due date,  provided that this additional fees shall not exceed Rs. 5,000 per return.

4. Coverage of Eforms/Documents:

 This scheme is exclusively available for following returns and not for others:
  • Form-3- Information with regard to limited liability partnership agreement and changes, if any, made therein;
  • Form-4- Notice of appointment, cessation, change in name/ address/ designation of a designated partner or partner and consent to become a partner/ designated partner;
  • Form-8; Statement of Account & Solvency (Annual or Interim);
  • Form-11- Annual Return of Limited Liability Partnership (LLP).
5. Immunity from prosecution:

This scheme is giving a benefit of opting to itself, that is immunity from prosecution.  The defaulting LLPs, which have filed their pending documents till 13th June 2020 and has made good the default, shall not be subjected to prosecution by Registrar for such defaults.

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. 
This blog is authored by Company Secretary Ronak Gupta. He is author of many blogs and runs many websites and youtube channels. His work is dedicated to corporate laws, legal, secretarial, professional services and also in strategy formulations for corporates. Mail him at: csronakgupta23@gmail.com or call at :9910226715

Comments

  1. UnknownMarch 8, 2020 at 5:00 PM

    Nice article, keep posting👍

    ReplyDelete
  2. BryantApril 5, 2021 at 5:54 PM

    Wow..Amazing blog.. This blog is very helpful for me. Thanks for sharing this information with us.If you want to know more about Tax consultants in delhi | GST consultants in delhi please click on it.

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