Partnership Compliances

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(Regulated by the Indian Partnership Act, 1932)

Partnership business firm

A partnership is one of the necessary forms of any business organization where two or more than two people have come together in the motive of a business. Those partners share all profits as well as losses jointly. In case of any liability occurs in that business, then all partners are jointly liable for those loses, and they need to incur those debts of the business.

Overview study

In India, partnership firms are required to maintain compliances as like LLP and other companies. The partnership firms are only required income tax filing where LLPs and corporates are required income tax filing as well as annual report filing with the ministry of corporate affairs. If a partnership firm comprises the turnover limits of 100 Lakhs, then a tax audit is also required to obtain that.

Rather than this income tax filing compliance, a partnership firm needs to follow many other compliances including GST, TDS, VAT/CST, ESI, service tax, etc. But these compliances can be varied according to the size of the entity, business growth, number of employees, net worth, turnover, revenue, etc.

Persons eligible for filing and returns
  • Partners involved in that partnership firms
  • Other authorized bodies/representatives

Important highlights of compliances

Income tax filing

If your turnover does not exceed 100 Lakhs as a registered partnership firm, then no income tax audit is required. But every firm needs to file income tax return irrespective of whether it is registered or not registered.

GST filing

After a partnership firm applied for GST filing registration, then it requires to file GST return filing process monthly, quarterly and yearly. But this is a mandatory process for partnership firm.

ESI return

ESI registration is quite essential for a partnership firm. When a firm hires more than ten workers or employees, then that firm is not eligible to apply for ESI return.

TDS filing

TDS return filing has some rules which should be followed by all firm. It is filed by the employers who have a valid tax collection and deduction account number (TAN).

Documents needed to comply with laws

  • Bank statement requires for the financial year (April 1st to March 31st) and also required for all bank accounts of the firm
  • Sales and purchase bills or invoices
  • Billing of all expenses incurred in that year
  • Require a copy of TDS challan, if deposited by the firm
  • TDS returns copy
  • Other documents according to need


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