Partnership Firm
Partnership Firm is the most popular forms of business entity in India for the Partnership business, it requires only two person to Start a Business.
WHY Partnership Firm?
- Responsibilities and duties are shared among the partners of the Firm
- Easy to set-up as partnership firm, registration is optional
- Minimal legal formalities
- Fewer Compliances
- Flexibility in decision making
What Registration are required to obtain :-
- PAN
- TAN
- GST
- Professional Tax
- Shop and Establishment License
- MSME
Mandatory Compliance of partnership Firm
- Income Tax Fillings : Every Partnership Firm has to mandatorily file income Tax return.
- GST Fillings : A Partnership Firm registered under GST has to mandatorily file GST returns monthly, quarterly, annually.
- TDS Fillings : A Partnership Firm who has TAN must quarterly file TDS returns and issue TDS certificates to the person whose TDS has been deducted.
- Professional Tax Returns : A Partnership Firm who has employed even a single employee whose salary is above the prescribed limit is required to deduct PT and file its returns.
- EPF and ESIC Returns : A Partnership Firm who has registered with ESIC and EPF has to mandatorily file returns.
- Accounting : Books of Accounts are required to be maintained if the income from Business or Profession exceeds Rs. 1,50,000/- or the Total Sales / Turnover / Gross receipts exceeds Rs. 2,50,000/-
- Audit : If the turnover of the Partnership Firm exceeds the Prescribed Limits he is required to get his books of Accounts Audit from an Chartered Accountant
Documents Required For Annual Compliances For A Partnership Firm
- Invoices of purchase & sales during a financial year
- Invoices of expenses incurred during a financial year
- Bank statements for all bank accounts in the name of partners in a financial year.
- Credit card statement for expenses incurred by partners on behalf of a company (if any)
- Copy of TDS challans deposited (if any)
- Copy of GST returns filed (if any)
- Copy of TDS returns filed (if any)
Procedure for Annual Compliance Fulfillment
- Maintain proper books of accounts
- Preparation and filing of balance sheet
- Get your accounts certified by CA in case your partnership firm turnover is above 100 Lakhs