Partnership Firm and its Major Compliances


The partnership firm is a very reasonable alternative to sole proprietorship that allows better access to funds, resources, and manpower efficiently. The partnership is governed by a partnership deed agreement that has to be amended or updated with every change or major event that takes place during the life of the partnership. It may be a change in the distribution of profits or change in capital contribution or addition of new partners or transfer of ownership within partners, death of a partner, etc. All these scenarios need an amendment in the partnership deed to proceed further.

Regulations for a Partnership Firm

Even though the partnership in itself isn’t a legal entity as all the income earned by the partnership is taxed at the individual level, there can be various regulations under which the partnership has to function. Some of these can be termed as Annual Compliances for Partnership Firm as well. These can be listed as follows:-

• GST Returns

 The partnership firm has to file GST returns every month, every quarter as well as every year. This is a statutory requirement for most of the firms irrespective of the business entity formation type. Ideally, Partnership Company Compliance basic package should include GST returns, as it is one of the very primary regulatory requirements.

• TDS Returns

If a partnership firm has a TAN which is nothing but Tax Deduction Account Number, the firm has the ability to deduct tax at source. This is commonly referred to as TDS. TDS can be deducted for the partners, employees or others who are generating profit/revenue beyond a certain threshold. In the case of TDS deductions, quarterly TDS returns are to be filed by the partnership firm. This kind of Partnership Firm Compliance service might be slightly more costly compared to the basic package.

• ESI Return

Employees State Insurance Corporation is an employee-focused plan that has to be in place for a partnership firm employing more than 10 employees. Such partnership firms need to have an ESI registration. It also triggers a yearly ESI return filing requirement as part of compliance.

• Audit Regulations

Proper book of accounts and audit by a professional is triggered as soon as the partnership breaches the threshold of Rs 2 crores of annual turnover. Audit services are included in the advanced Partnership Company Compliance packages.

• Income Tax Return Filing

The service of income tax return filing is a comprehensive service that most of the partners in the partnership will be looking forward to. Since the partnership in itself is not a legal entity, it might not exactly file a return. However, it might have to file a return with the Registrar of Companies or prepare books for audit with appropriate financial statements and bookkeeping practices. All these services are usually included in the advanced package. However, turnover and volume of transactions can have a significant impact on pricing.

The filing of personal income taxes at the partner’s level is also included. Other services in the advanced Partnership Firm Compliances package may include help in the drafting of partnership deed, setting up legal agreements with different parties based on requirements, hiring of a tax auditor for statutory audit (if required) and many other admin type services.

Neusource Startup Minds is a Business Management Consultant Company, offers the best business services like Proprietorship Firm Compliances, Bookkeeping and Accounting Services, Private Limited Company Registration and many other business services.
Location: India

Comments

  1. Anonymous7 July 2022 at 02:06

    Nice post! It is really interesting to read from beginning to end regarding annual roc compliance for private limited companies in Singapore. Thanks for sharing.

    ReplyDelete

Post a Comment

Popular posts from this blog

Annual Compliances for Proprietorship Firm

Image
Sole Proprietorships of India have only the smallest legal acquiesced, which are much lesser than those applicable to the private or public limited corporations. It is essentially owing to the fact that a sole proprietorship has no disparate certified entity distinct from its owner or proprietary, and this form of industry existence does not make use of the benefits of limited liability. The annual revenue of the possessor is measured the annual earnings of the sole proprietorship firm. Henceforth, like other business or service entities that are listed and enrolled under the MCA, i.e., the Ministry of Corporate Affairs, the sole proprietorship firms are not required to record an annual statement or budgetary declarations with the MCA. The main and important statutory compliances to be executed by these proprietorship firms are consequently tax-related recurring and year-long compliances. Nonetheless, some more recurrent or annual compliances may also be required for the goal
Read more

Top Benefits of Outsourcing Accounting and Bookkeeping Services

Image
Other companies are growing. Everything is the same in yours: the software, the economy, the education, the knowledge. Still, other firms and moving faster in the growth sector and also your clients are getting snatched away by them. These might be some of the concerns you might be facing. There can be multiple reasons why this is happening. One of the major reasons can be Accounting and Bookkeeping Services . Many people are of the assumption that bookkeeping services and accounting services are only about saving costs. But this is not true. Here are the some of the major advantages of outsourcing the Bookkeeping and Accounting Services are as mentioned below: ·         Your firm grows fast and becomes more sustainable and strong The outsourcing bookkeeping and accounting are entertained for the biggest reason and that is to assist you in maximizing the return on the competencies. Also, you can use this valuable time in making your company grow. You can focus on the m
Read more

Compliances Involved in Proprietorship Firms, Partnership Firms and LLPs

Image
Sole Proprietorships of India have only the minimum legal acquiesced, which are much lesser than those relevant to the private or public limited corporations. It is essentially owing to the fact that a sole proprietorship has no disparate authorized entity distinct from its owner or proprietary, and this form of business existence does not make use of the benefits of limited liability. The annual revenue of the possessor is considered the annual earnings of the Sole Proprietorship Firm . Henceforth, like other business or service entities that are listed and enrolled under the MCA, i.e., the Ministry of Corporate Affairs, the sole proprietorship firms are not obligated to record an annual statement or budgetary declarations with the MCA. The main and significant statutory compliances to be executed by these proprietorship firms are consequently tax-related recurring and year-long compliances. Nonetheless, some more recurrent or annual compliances may also be needed for the goa
Read more