Month: January 2016

LLP Amendment Rules 2015

Zappy Turns 1

First B'Day Yes, Zappy Consults successfully completed its first year of incorporation on January 5. New Year is a whole new bunch of opportunities and hope. We enjoy our first anniversary very early this year and have the hope to have more and more successful years in our carrier. Many of us must be worried or personally affected or consoling a family member or friend who were affected due to flood in south-eastern sea-shore part of India. Thanks to MCA for extending Annual Return filings for Chennai and Pondicherry ROCs. We wish and pray for a healthy recovery for all the business who have to start up from zero and recover all damaged machineries from the flood. Lately, we are seeing various amendments in LLP Act. New Limited Liability Partnership (Amendments) Rules, 2015 were notified. Version of various LLP rules and forms were modified including Form 8, 2A, 4A, LLP were modified and Form 14 LLP was withdrawn on October and November 2015. Even Form 4 LLP is likely to be notified w.e.f. January 15. In this edition, we will be seeing about the amendments made in LLP Act and about the provisions on Annual Filing of LLP along with our usual Legal terms and News Bites related to notifications by MCA, SEBI, RBI and IT Department.

CEO Saranya Deivasigamani,
CEO

Limited Liability Partnership

Limited Liability Partnership (Amendments) Rules, 2015

The LLP (Amendments) Rules, 2015 came into force on October 2015 in which the following amendments were made.
  1. For rule 33, the following rule shall be substituted, namely:-
“33. For the purposes of the proviso to sub-section (1) of section 58 of the Act, where the firm has been converted into limited liability partnership, an intimation of such conversion to the concerned Registrar of Firms shall be given in Form 14 within fifteen days of the date of registration of the Limited Liability Partnership.”;
  1. Following rules shall be omitted
    • in rule 39, sub-rule (3);
    • in rule 40, sub-rule (3).
  2. In “FORM 2″, under the heading “ADDENDUM TO FORM 2”, under PART A, for serial number 1 and entries relating thereto, the following shall be substituted, namely:-
“1. *Indicate Registrar’s reference number for name approval [Service Request Number (SRN) of Form 1];
  1. In “FORM 4”, under the heading “ADDENDUM TO FORM 4”, serial number 1 and entries relating thereto shall be omitted;
  2. In “FORM 4”, under the heading “ADDENDUM TO FORM 4”, serial numbers 2 to 7 shall be renumbered as serial numbers 1 to 6 respectively;
  3. National Emblem shall be inserted before:
    • The words “CERTIFICATE” OF INCORPORATION”, in “FORM 16”.
    • The words “CERTIFICATE OF REGISTRATION ON CONVERSION”, in “FORM 19”.
    • The words “CERTIFICATE FOR ESTABLISHMENT OF PLACE OF BUSINESS IN INDIA”, in “FORM 30”.
Annual Filing requirements by LLP
LLP is required to file LLP Form 8 (Statement of Account & Solvency) and LLP Form 11 (Annual Return) annually. The ‘Annual Return’ is required to be filed within 60 days of close of the financial year and ‘Statement of Accounts & Solvency’ shall be filed within 30 days from the end of six months of the financial year and ‘Statement of Accounts & Solvency’ shall be filed within 30 days from the end of six months of the financial year to which it relates. Every LLP has to maintain uniform financial year ending on March 31 of a year. For doing other compliances Form 12 (Form for intimating other address for service of documents) is to be filed for giving additional address to the Registrar for the purpose of service of documents. Audit Requirement under LLP Act: Only those LLP whose annual turnover exceeds . 40 lakhs or whose contribution exceeds . 25 lakhs are required to get their accounts audited by a qualified Chartered Accountant. Audit requirement under Income Tax Act: Audit of accounts is mandatory requirement under Income Tax Act when the annual turnover of LLP is more than one hundred lakhs rupees. Certifications from PCS: In case of LLPs with turnover more than 5 crores in a financial year or contribution more than 50 lakhs, the annual return shall be certified by a Company Secretary in Practice. Filing Income Tax Returns: In case where Audit is required, the last date for filing Income Tax returns is September 30 every year and wherein companies which do not fall under the Audit requirement criteria will have to file Income tax returns on or before 31st July every year. If the LLP has not carried any business during the year ended March 31, the LLP has to file a NIL IT RETURN with Income Tax Authorities. Filing Annual Accounts: All LLPs are required to maintain the Books of Accounts in Double Entry System and has to prepare a Statement of Solvency (Accounts) every year ending on March 31. Form – 8 LLP to be filed with the Registrar of LLPs on or before October 30 every year. It is the last date for filing annual accounts. Penalty for Non-Filing: If there is delay in filing form no.8 and 11 of LLP, will have to pay penalty of . 100 per day till it is complied. The partners cannot close or wind up LLP without filing Annual Accounts.

Legal Term

Eleemosynary
(eh-luh-moss-uh-nary) adj. charitable, as applied to a purpose or institution.

NewsBites

MCA Updates

  • Notification under section 458 of Companies Act, 2013: Delegating of powers to RDs under section 208 of the said Act.
  • Extension of last date of in filing of forms MGT-7 (Annual Return) and AOC-4 (Financial Statement) under the Companies Act, 2013- State of Tamil Nadu and UT of Pondicherry was extended till Jan 31, 2016.

SEBI Updates

  • Mandatory requirements/Exit Policy for Commodity Derivatives Exchanges
  • Circular on Compliance with SECC by Listed Stock Exchanges Revised Contents of Application-Cum-Bidding Form and Manner of disclosure
  • Procedure to deal with cases prior to April 01, 2014 involving offer / allotment of securities to more than 49 up to 200 investors in a financial year
  • Investment by Gold ETFs in Gold Monetisation Scheme of Banks.

RBI Updates

  • Master Circular- Prudential Norms for Classification, Valuation and Operation of Investment Portfolio by FIs- Amendment – RBI/2015-16/283 on Jan 7, 2016
  • Master Directions passed on Jan 1, 2016
  • Reporting under Foreign Exchange Management Act, 1999 – RBI/ FED/ 2015-16/13
  • Import of Goods and Services -RBI/FED/2015-16/12
  • Export of Goods and Services – RBI/FED/2015-16/11
  • Direct Investment by Residents in JV / WOS Abroad – RBI/FED/2015-16/10
  • Acquisition and Transfer of Immovable Property under Foreign Exchange Management Act, 1999 – RBI/FED/2015-16/7
  • Establishment of Liaison/ Branch/ Project Offices in India by Foreign Entities – RBI/FED/2015-16/6
  • Compounding of Contraventions under FEMA, 1999 – RBI/FED/2015-16/1

Income Tax Updates

  • Notification No. 1/2016 [F. No. 133/41/2015 –TPL)] / GSR 21(E) : Corrigendum !New 12 January 2016
  • Circular No. 25/2015 : ​Penalty u/s 271(1)(c)
  • Circular No. 24/2015 : Recording of satisfaction note under section 158BD/153C of the Act
  • Notification No. 95/2015 [F.No.142/28/2012-(SO)TPL] / SO 3545(E) : Income-tax (22nd Amendment) Rules, 2015
  • Circular No. 23/2015 : ​TDS under section 194A of the Act on interest on fixed deposit made on directions of Courts
  • Notification No. 94/2015 [F. No. 503/08/2004-FTD-I] / SO 3499(E) : Agreement between the Government of the republic of India and the Government of the republic of Macedonia for the avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on income​
  • Circular No. 22/2015 : ​Allowability of employer’s contribution to funds for the welfare of employees terms of section 43B(b) of the Income-tax Act
  • Notification No. 93/2015 [F.No.133/41/2015-TPL] / G.S.R. 978(E): Income-tax (21st Amendment) Rules, 2015.
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