Friday, September 24, 2021
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FAQs on revised LLP Settlement Scheme, 2020

Q. What is the revised LLP Settlement Scheme, 2020?

A. Revised “LLP Settlement Scheme, 2020″ is a scheme to give a one-time waiver of additional filing fees for delayed filings by the LLPs with the Registrar of Companies during the currency of the Schemes, i.e. during the period starting from 1st April 2020 and ending on 30th September 2020. Refer General Circular No 13/2020 available at the link – http://www.mca.gov.in/Ministry/pdf/GeneralCircular06_04032020.pdf

Q. What is the objective of this revised Scheme?

A. The Ministry of Corporate Affairs, in order to support and enable Limited Liability Partnerships (LLPs) registered in India to focus on taking necessary measures to address the COVID-19 threat and to reduce the compliance burden, certain modifications to the General Circular 06/2020 and it has been decided to be implemented w.e.f 1st April 2020 to 30th September 2020.

Q. What is the time period of the revised Scheme?

A. The time period of the revised Scheme is from 1st April 2020 and shall remain effective up to 30th September 2020 (both days inclusive).

Q. What is defaulting LLP as per the Scheme?

A. “Defaulting LLP” means an LLP registered under the Limited Liability Partnership Act, 2008 which has made a default in filing of documents on the due date(s) specified under the LLP Act, 2008 and rules made thereunder. Contextually, the Defaulting LLP is one that has made a default in filing of documents on the due date(s) specified under the Act and not made good the default.

Q. What are belated documents as per the Scheme?

A. “Belated documents” means all documents or forms which are required to be filed in the MCA 21 registry under the provisions of the LLP Act, 2008 and rules made thereunder.

Thus, all forms that are required to be filed under the provisions of the LLP Act, 2008 and rules made thereunder.

Q. Whether an LLP is required to file an application to the Registrar to avail of the Scheme?

A. No, the defaulting LLP may avail of the scheme for filing such forms and documents which have not been filed or registered in time and at the time of filing also pay statutory fees as are payable.

Q. What shall be the manner of payment of fees and additional fees on filing belated documents for seeking immunity under the Scheme?

A. Under the scheme, for the belated documents, the LLP shall pay Statutory filing fees as prescribed under the LLP Act and rules made thereunder.

Q. Whether any additional fee payable for filing forms under this Scheme?

A. No additional fee is payable for filing any belated document under the Scheme.

Q. What action Registrar can take on the defaulting LLPs which have not availed this Scheme after the conclusion of the same?

A. On the conclusion of the Scheme after 30th September 2020, the Registrar shall take necessary action under the LLP Act, 2008 against the LLPs which have not availed this Scheme and are in default in filing of documents as required under the provisions of LLP Act, 2008 in a timely manner. The defaulting LLPs may be subjected to prosecution by Registrar for such defaults.

Q. When the Scheme shall be applicable?

A. The scheme shall be applicable to the filing of all documents or forms along with payment of fees prescribed.

Q. Which LLPs are ineligible for availing this Scheme is not applicable?

A. This Scheme shall is not applicable to LLPs which have made an application in Form 24 to the Registrar, for striking off its name from the register as per provisions of Rule 37(1) of the LLP Rules, 2009.

Q. Documents for which period in the past, a defaulting LLP is permitted to file?

A. “defaulting LLP” is permitted to file belated documents, which were due for filing till 31st August 2019 in accordance with the provisions of this Scheme.

Q. Is there any immunity from prosecution in respect of document(s) filed under the scheme?

A. Yes, the defaulting LLPs, which have filed their pending documents till 30th September 2020 and made good the default, shall not be subjected to prosecution by the Registrar for defaults in the filing of forms and documents by the due date.

Q. What is the difference between the Original Scheme dated 4th March 2020 and Revised Scheme dated 30th March 2020?

A. The Original Scheme dated 4th March 2020 required LLPs to make payment of an additional fee of Rs 10 per day is payable per document subject to a maximum of Additional fees not exceeding Rs. 5,000/- per document whereas no additional fees are payable under the Revised Scheme dated 30th March 2020.

Further the Original Scheme was applicable only for four forms viz. Form Nos 3, 4, 8 and 11 whereas the Revised Scheme is applicable for all forms that are required to be filed under the provisions of the LLP Act, 2008 and rules made thereunder.

 

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TaxClue Teamhttp://taxclue.in
Taxclue is an online news portal for reporting all news, articles, judgments, Circulars, orders, and notifications relating to various corporate and tax laws in India. We use the tagline ‘Simplifying Laws’. Our mission is to Simplify the Laws and make people aware of their rights and duties in relation to tax matters in order to equip them to participate in nation-building.

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