Section 34A explained: this guide covers what it means, who it applies to, the step-by-step process, documents required, fees, due dates and penalties in India — so you can stay compliant with confidence and avoid costly mistakes.
Section 34A is a new section. It was inserted after section 34 by the Limited Liability Partnership (Amendment) Act, 2021 and lets the Central Government prescribe standards of accounting and standards of auditing for a class or classes of LLPs, in consultation with the National Financial Reporting Authority and on the recommendation of the Institute of Chartered Accountants of India. If you want to know which standards apply to your LLP's accounts, our annual filing of LLP team can confirm that for you from the current rules.
Under section 34A, the Central Government may, in consultation with the National Financial Reporting Authority constituted under section 132 of the Companies Act, 2013, prescribe (a) the standards of accounting and (b) the standards of auditing, as recommended by the Institute of Chartered Accountants of India constituted under section 3 of the Chartered Accountants Act, 1949, for a class or classes of limited liability partnerships. The section is enabling: it does not itself list any standard.
The text of section 34A
As inserted by clause 14 of the 2021 Act:
"The Central Government may, in consultation with the National Financial Reporting Authority constituted under section 132 of the Companies Act, 2013,— (a) prescribe the standards of accounting; and (b) prescribe the standards of auditing, as recommended by the Institute of Chartered Accountants of India constituted under section 3 of the Chartered Accountants Act, 1949, for a class or classes of limited liability partnerships."
There was no section 34A in the Act as originally enacted, so there is no earlier text to compare. The section appears in the Act with the 2021 amendments.
Reading the section piece by piece
| Element | What the section says |
|---|---|
| Who acts | The Central Government |
| Consultation | With the National Financial Reporting Authority (NFRA) constituted under section 132 of the Companies Act, 2013 |
| What it may prescribe | (a) standards of accounting; (b) standards of auditing |
| Source of the standards | As recommended by the Institute of Chartered Accountants of India (ICAI), constituted under section 3 of the Chartered Accountants Act, 1949 |
| To whom they apply | A class or classes of LLPs |
Points to note.
- "May". The power is discretionary. The section does not say that standards must be prescribed or that any have been. Whether a standard applies to a given LLP depends on what has actually been prescribed by rules, which this article does not set out.
- "A class or classes". Standards need not apply to all LLPs alike. This fits the idea of different treatment for different kinds of LLP, such as small LLPs, which the 2021 Act defines in section 2(1)(ta). For the definition, see sections 2 (remaining definitions).
- Two separate sets. Accounting standards deal with how transactions are recorded and presented. Auditing standards deal with how the audit is carried out. Section 34A lists both separately.
- Source. The standards are those "as recommended by" ICAI. The Government acts on ICAI's recommendation, in consultation with NFRA.
The rule-making power
The 2021 Act also added a rule-making head to section 79(2): clause (ta), "the standards of accounting and auditing under section 34A". So the prescribing is done through rules made under the Act. The details are in the rules, not in section 34A. See sections 78 to 81 for the rule-making provisions.
How it fits with section 34
Section 34 requires books of account on cash or accrual basis, a Statement of Account and Solvency, and audit "in accordance with such rules as may be prescribed". Section 34A adds a layer: where standards are prescribed for a class of LLPs, the accounts and the audit of that class are to follow them. The text of section 34A does not say in terms how the standards are to be applied or what the consequence of departing from them is. That should be read from the rules and from section 34 itself.
See section 34 for books, the statement and audit, and our article on audit of LLP accounts: when mandatory for when an audit is required.
Example. Suppose standards are prescribed for LLPs above a certain size. Gupta Engineering LLP, in that class, would prepare its accounts and have them audited in line with those standards. A very small LLP outside the class would not be bound by them, because section 34A speaks of "a class or classes". The class in the example is invented to show how the section works; the Act's text does not itself name any class.
What section 34A does not say
- It does not name the standards. They are to be prescribed.
- It does not give a date from which they apply. This article gives no commencement date.
- It does not state a penalty. Failure to keep accounts or have them audited as the rules require falls under section 34(6); see section 34.
- It does not repeat the exemption power in the proviso to section 34(4).
Practical points
- Ask your accountant which standards, if any, have been prescribed for your class of LLP in the current rules, and keep the answer on file.
- Record in your working papers the standard applied each year.
- Treat the section as a reason to keep clean, consistent books, since the standards will be applied by reference to a class of LLPs.
Need help with LLP accounts?
If you are unsure which standards your LLP's accounts must follow, or whether your LLP falls in a class for which standards have been prescribed, the answer sits in the current rules and not in the Act alone. Our annual filing of LLP service prepares accounts and filings with those rules in view.
Key takeaways
- Section 34A was inserted by the Limited Liability Partnership (Amendment) Act, 2021.
- The Central Government may prescribe standards of accounting and auditing for a class or classes of LLPs.
- It acts in consultation with the NFRA and on the recommendation of the ICAI.
- The section is enabling: the standards themselves are in the rules.
Read next
- Section 34: books of account, statement of solvency and audit
- Section 35: annual return
- Audit requirement for an LLP in India
- Key highlights of the LLP (Amendment) Act, 2021
Disclaimer: Based on the Limited Liability Partnership Act, 2008 as amended by the Limited Liability Partnership (Amendment) Act, 2021, as consulted on 1 October 2026. Forms, fees and procedure are set by the LLP Rules, 2009 as amended from time to time. This article is general information, not legal advice; check the official text before acting.