Partnership Firm Company Annual Compliances

Compliances for partnership:

• Once the registration process has been completed, it is necessary for the partnership firm to obtain Permanent Account Number (PAN) and Tax Deduction Account Number from the Income Tax Department.
• Irrespective of the revenue or loss, the Partnership firm needs to file an Income tax return (ITR). The rate of income tax on the whole of the total income will be 30% surcharge on income tax, for a partnership firm.
• It is necessary to obtain a tax audit for Partnership Firms which have an annual turnover of over Rs.100 lakhs.
• for businesses whose annual turnover exceeds Rs, 40 lakhs (Rs 20 lakhs for North Eastern states), Goods and services tax(GST) registration is required. For certain businesses like Export-Import, E-commerce, and Market Place Aggregator, GST registration is mandatory.
• After the GST registration, the firms have to file monthly, quarterly as well as annual GST returns.
• For those partnership firms which have employees’ state insurance (ESI), it is mandatory for them to file an ESI return.

Documents Required for Annual Compliance of a Partnership Firm

• Invoices of sales and purchase during a financial year.
• Invoices of expenses made during a financial year.
• Bank statements of the bank accounts of the partners.
• Copy of tax deducted at source (TDS) copies filed.
• Copy of GST returns filed.