Partnership firms are required to maintain compliance like LLPs and Companies registered in India. Partnership firm compliance mainly includes filing of income tax return. In addition to the basic compliance, partnership firms may also be required to comply with TDS regulations, GST regulations, VAT / CST regulations, Service Tax regulations, ESI regulations and others. The compliance requirement for a business would vary based on the type of entity, industry, state of incorporation, number of employees and sales turnover. Obtaining Permanent Account Number and Tax Deduction Account Number registration from the Income Tax Department for a Partnership Firm from the relevant Authorities once the Partnership Firm is registered is necessary.
Broadly, the periodic and annual compliances to be made by a partnership firm of India, relate to the following:
1) Income Tax Returns
2) Financial Statements
3) And, Compliances associated with the Laws like the State Shops and Establishments Act, Labor & Employment Act, Pollution Control Act, VAT/Service Taxes, etc.
1) Registration of firm in Form I with a time limit of 1 year.
2) Change in Firm Name or Principal Place or Nature of Business in Form II with a time limit of 90 days.
3) Closing and Opening of Branches in Form III with a time limit of 90 days.
4) Change in Name/Address of Partner in Form IV with a time limit of 90 days.
5) Change in Constitution or Dissolution in Form V with a time limit of 90 days.
6) When a minor becomes major and elects to become or not to become a partner in Form VI with a time limit of 90 days.
1) Invoices of Purchases and sales during the year
2) Invoices of expenses incurred during the year
3) Credit Card Statement if Expenses are incurred by Partners on behalf on Firm
4) Bank statement from 1 April to 31 March for all bank account in the name of Partner
5) Copy of VAT or Service Tax returns filed (if Any)
6) Copy of TDS Challans Deposited (if Any)
7) Copy of TDS Returns filed (if Any)