Monthly and Annual Compliances for a Partnership firm
Partnership firms are required to maintain compliances like other corporate firms. A partnership firm needs to file an income tax return with the Income Tax Department each year.
The annual compliances of a Partnership firm also include maintaining the books of accounts. If the annual sales turnover of the Partnership firms is more than Rs. 1 crore a tax audit is required.
In addition to this, a Partnership firm is also required to adhere to the TDS regulation compliance, GST regulation, ESI regulations, EPF regulations and others.
The compliance requirement for a partnership varies based on the type of entity, industry, state of registration, number of employees and an annual turnover of the company.
Major compliances for partnership registration
Income tax filing – Income tax filing must be made by all partnership firms at the end of every year.
As per the Income Tax Act 1961, Tax audits of partnership firms are mandatory if Annual turnover / gross receipts exceed One crore rupees.
GST filing – A partnership firm must file GST returns on a monthly, quarterly and annual basis
ESI returns – ESI Refers to Employees state Insurance, A partnership is required to take ESI Registration if it has more than 10 employees.
All partnership firms having ESI registration must file ESI returns. ESI returns are required to be filed every month.
TDS filing – Partnership firms that have TAN must deduct TDS Monthly, file Quarterly TDS returns and deduction of taxes are done at source as per TDS rules.
Conclusion
When you establish a partnership firm, there are a few compliances that needs to be considered. The compliances that are required to be met by firms are different from that of corporate entities. A partnership firm has lesser compliance when compared to that of other companies.
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