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