Partnership firm compliance mainly includes filing of income tax return. Partnership firms having annual turnover of over Rs.100 lakhs are also required to obtain a tax audit.
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.
Compliance Partnership firm – Forms and Documentation
Partnership is simple to form and manage compared to company and LLP. However, there are requirement of filing various forms in case of change in address, addition / removal of partner, change in firm name or business place etc.
Common compliances required under the Act
Major Compliance for a Partnership Firm
GST Filing
Under the GST regime proposed to be rolled out in 2017, partnership firms having GST registration would be needed to file monthly, quarterly and annual GST returns
ESI Return
ESI return must be filed by all partnership firms having ESI registration. ESI registration is needed once the partnership firm employs over 10 employees.
TDS Filing
Quarterly TDS returns must be filed by partnership firms that have TAN and are needed to deduct tax at source as per TDS rules.
Although no compulsory audit is provided by the Indian Partnership Act, 1932 but in practice most of the partnership firm get their accounts audited. As per the Income Tax Act, 1961, Audit Requirement for Partnership Firms Partnership Firms Are required to get their accounts audited if they meet any criteria listed below:
