What is the LLP Amnesty Scheme?
The government is all set to launch an amnesty scheme to resolve the delay in filings by limited liability companies (LLP), to a certain extent that could benefit from about 20-25% of these.
LLP is a corporate business firm in which flexibility and the advantages of limited liability are low. Presently, about 1.5 lakh LLPs exist in India, with about 1.3 lakh active companies.
”Sources said that the scheme will allow those who have failed to file forms 3 and 4 and also forms 8 and 11 can file the returns along with an additional fee of about Rs 10 a day and with an overall cap of Rs 5,000. Currently, the penalty for delay in filing any of these forms is Rs 100 for each day.”
Form 3 deals with the initial agreement, whereas forms 8 and 11 refer to the financial statement. “Many have not been able to submit form 3 for 10 years. For them, the penalty may be Rs 3.5 lakh or more. Now, they can erase the breach simply by paying a fee of Rs 5,000, “a source added, appending that MCA will give notice about the scheme in a day or two.
The main aim of this move is to alleviate the lives of companies and help them cure the problems they may have to handle due to the non-submission of statements.
However, getting to this point has been a perplexing matter as the LLP Act of 2008 does not furnish such a mechanism. As a result, the Ministry of Corporate Affairs first used the provisions of the Companies Law to extend the scheme to LLPs, with a special provision of the LLP Law.
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