The Indian Partnership Firms are quite well facilitated to maintain only some annual filings and statutory compliance's every year, when compared to the annual filings and compliance of LLP, a private limited company, public limited company of India. The best benefit of partnership act is that partners are taxed under the income tax slab for individuals, whereas other Indian firms are taxed under the tax-slab for Indian firms. Moreover, a partnership firm also has to make its annual filings even if it is dormant.
Broadly, the annual filings to be made by a partnership firm of India is as follows:
1) Income Tax Returns
2) Financial Statements
3) If any, compliance's that are associated with the Laws like the Shops and Establishments Act of state, Pollution Control Act, Labor and Employment Act, VAT/Service Taxes, etc.
In addition to the above mentioned filings, partnership firms would have to comply with TDS regulations, VAT/CST regulations, GST regulations, ESI regulations, Service Tax regulations and others. The filings of a business are based upon the type of entity, state of incorporation, industry, number of employees, etc.
When it comes to annual accounts, a partnership firm does not have to mandatorily file the audited financial statements every year with the Registrar. However, as per the Indian Income Tax Act of 1961, it has also become necessary for partnership firms to get their financial accounts tax-audited if the annual turnover of partnership firms crosses Rs.1 Cr. Thus, generally filing only the ITR (in Form ITR-V) is the main annual filing that is to be made by a partnership firm of India.
The contract has to be filed by a partnership firm before the due dates, which are as follows:
1) If a financial accounts audit is not required then the due date is 31st July.
2) If a financial accounts audit is essential then the due date is 30th September.