Home / Partnership Firm Compliance

Updated on 24 Oct 2020  9.00 AM IST | 4 min read

An Overview to Partnership Firm Compliances

A Partnership firm needs to maintain compliances like LLP’s, public or private limited companies. Partnership firm compliance mainly includes income tax return filing whereas LLP & company needs to submit both the reports – Income tax return filing to the income tax department and annual filing to the ministry of corporate affairs. Partnership firms need to complete tax audit if the annual turnover of partnership firm is above Rs.100 Lakhs.


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Basic Partnership Firm Compliances

In addition to complying with the basic compliances, partnership firm also needs to comply with income tax regulations, TDS regulations, GST regulations, ESI regulations etc. The requirement of compliance varies depending upon the type of entity, industry, state of incorporation, number of employees & sales turnover. It has very minimal statutory requirements in comparison to LLP, public or a private limited company. In relation to taxation, partnership firm is taxed under the income tax slab for firms whereas partners of a partnership firm are taxed under the income tax slab for individuals. Partnership firm has to mandatorily fulfill its statutory compliance requirements even if it does not carry out business/service. The major compliances of a partnership firm are periodic and annual compliances. It is not necessary for a partnership firm to file audited financial statements every year. The main and the only annual compliance for a partnership firm is to file income tax return via form ITR-V.


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

The procedure for annual compliance fulfillment is as follows –

  1. Maintain proper books of accounts
  2. Preparation and filing of balance sheet.
  3. Get your accounts certified by CA in case your partnership firm turnover is above 100 Lakhs.

Major Compliances For A Partnership Firm

The procedure for annual compliance fulfillment is as follows –

  • Income tax filing – Every partnership firm has to mandatorily file income tax return to the income tax department. They also need to complete tax audit if the annual turnover of the partnership firm is above Rs.100 Lakhs.
  • GST filing – Partnership firms registered under GST has to mandatorily file GST returns on monthly, quarterly & annual basis.
  • TDS filing – Partnership firms having TAN must file quarterly TDS returns as per TDS rules.
  • ESI Filing – All partnership firms registered under ESI act has to mandatorily file ESI returns. ESI registration is required in case a partnership firm employs 10 or more employees.

Partnership Firm Compliances FAQ’S

If the turnover of a partnership firm is above 100 Lakhs, it is necessary for a partnership firm to get their tax audited.
Partnership firms registered under GST needed to file GST returns monthly, quarterly and annually.
Partnership firms having TAN must file quarterly TDS returns as per TDS rules.
All partnership firms registered under ESI act has to mandatorily file ESI returns. ESI registration is required in case a partnership firm employs 10 or more employees.
A partnership firm has to comply with income tax regulations, TDS regulations, GST regulations, ESI regulations etc.
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Due Dates

  • GSTR 3B for August 2020 (15 States/UT’s - Chhattisgarh, MP, Gujarat, Daman and Diu, Dadra and Nagar Haveli, Maharashtra, Karnataka, Goa, Lakshadweep, Kerala, TN, Puducherry, Andaman and Nicobar Islands, Telangana and Andhra Pradesh) Oct 1st, 2020
  • GSTR 3B for August 2020 (22 States/UT’s - Himachal Pradesh, Punjab, Uttarakhand, Haryana, Rajasthan, Uttar Pradesh, Bihar, Sikkim, Arunachal Pradesh, Nagaland, Manipur, Mizoram, Tripura, Meghalaya, Assam, West Bengal, Jharkhand, Odisha, Jammu and Kashmir, Ladakh, Chandigarh, Delhi) Oct 3rd, 2020
  • GSTR 1 for September 2020 (turnover more than INR. 1.50 Crore) Oct 11th, 2020
  • Monthly GSTR 6 for September 2020 Oct 13th, 2020
  • Monthly GSTR 7 (Summary of Tax Deducted at Source (TDS) and deposited) for September 2020 Oct 10th, 2020
  • Monthly GSTR 8 (Summary of Tax Collected at Source (TCS) and deposited by e-commerce operators) for September 2020 Oct 10th, 2020
  • CMP 08 for July to September 2020 Oct 18th, 2020
  • GSTR 5 (Non-Resident Foreign Taxpayers) Monthly Filing Due Date for September 2020 Oct 20th, 2020
  • GSTR 5A (Non-Resident OIDAR Service Provider) Monthly Filing Due Date for September 2020 Oct 20th, 2020
  • GSTR 3B for September 2020 (Annual Turnover of more than Rs 5 Cr in Previous FY) Oct 20th, 2020
  • GSTR 9 and 9C (Annual Return) FY 2018-19 Dec 31st, 2020
  • GSTR 1 (Quarterly) for July to September (Summary of outward supplies where turnover is upto Rs 1.5 crore) Oct 31st, 2020
  • Annual GSTR 4 for FY 2019-20 Oct 31st, 2020