Amnesty scheme for late Submissions by LLPs is all set to launch soon
The government is all set to launch an amnesty scheme for the absolution for 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 the flexibility of a company and the advantages of limited liability of a company are at a low level. Presently, in India, about 1.5 lakh are there, with about 1.3 lakh of active companies.
”Sources told 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. “There are many who 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 also to help them to cure the problems which they may have to handle due to the non-submission of statements.
But getting to this point has been a perplexing matter as the LLP Act of 2008 does not furnish for 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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