Check Summary of 2023 MCA Amnesty Scheme for LLP e-Forms

The discussion shall take place for "Latest Amnesty Scheme introduced by MCA in relation to Limited Liability Partnership".

A General Circular No 08/2023 Dated: 23rd August 2023- Subject- Condonation of Delay in filing of Form-3, Form 4, Form 11 u/s 68 of LLP Act, 2008 is been issued by the MCA. 

MCA has acknowledged that they've received numerous complaints regarding technical glitches on their website and discrepancies in the master data. These issues have prevented Limited Liability Partnerships (LLPs) from submitting the LLP-3, LLP-4, and LLP-11.

In order to facilitate a more business-friendly environment, the MCA is utilizing its authority under Section 67 of the LLP Act, 2008. They have decided to grant a one-time relaxation in additional fees and any related penalties for delayed filing of the aforementioned three forms, as elaborated in this article.

However, one aspect of this initiative raises some confusion. Why hasn't the MCA included Form LLP 8 in this amnesty scheme? Both technical issues and master data problems have equally affected the submission of LLP 8.

FAQs About Limited Liability Partnership 

Below are the different Frequently Asked Questions (FAQ) that a taxpayer should know about the new Amnesty Scheme related to LLP forms: 

Question 1. Under this amnesty scheme which forms are being covered?

Answer: This amnesty scheme is designed especially for LLPs. Companies using this strategy get nothing. This scheme does not even cover all types of LLP. 

This amnesty scheme offers benefits in the following three forms:

• LLP -3 
• LLP -4
• LLP -11

Question 2. Should Form 3 and Form 4 receive STP mode approval?

Answer: According to point number 3 in the circular, Forms 3 and 4 submitted within this scheme will be subject to processing in STP Mode, where approval is automatic, for all purposes except for specific exceptions stated below.

If Form LLP 3 is filed to change business activity and option 17 is selected (either on its own or in combination with other purposes), then such a form will be approved in NON-STP mode.

Question 3. Is there any need for the series of filing these forms?

Answer: According to Paragraph 3 of the Circular.DG filing of such forms in a sequential way is very crucial. 

If an LLP has to submit more than one LLP 3 or LLP 4, ensure that the "Old Event Date Form" is filed first, followed by the other forms so that the system can properly update master data. DG 

Note: Before proceeding with additional filings, LLP must confirm that the master data is accurate after submitting the form for one event.

Question 4. If the information in the Master data is wrong for any Limited Liability Partnerships (LLPs) for that case what is the method to file such three forms?

Answer: As per Paragraph 3(ii) of the circular, for the case of a revision in the agreement during the time of preparation of such forms the pre-filled information under the current master data of the LLP will be furnished. However the same could be editable. You are provided with the facility by MCA to amend the information. Hence the LLP is able to revise the data and specify the true information. 

In the case if any data is missing then that is required to get added with the additional option in File No. 19 of the LLP Form 3 with the same event date.

LLP must contact the MCA support desk or submit a ticket to the help desk with a screenshot of the error or wrong data and the LLPIN in the case of filing the initial agreement.

Another option- An initial agreement can be filed via stakeholders with the pre-filled data and nextly revise the master data via filing LLP 3 for the revision in the agreement with the same even date and enclosing the initial agreement. 

Question 5. Which duration of LLP 3 and LLP 4 could be filed beneath this scheme without additional fees?

Answer: Under para 3(iii) of the scheme, the MCA does not grant open-ended relaxation for the filing of LLP 3 and LLP 4. It is conditional relaxation, as noted below:

Under this scheme Only Form LLP 3 and Form LLP 4 with a due date on or after 01.01.2021 can be filed without additional fees.

For the case when Form LLP 3 and Form LLP 4 have a deadline on or before 31.12.2020 then these two forms can be filed with additional fees.

• Two times the duration additional fees for Small Limited Liability Partnerships
• Four times the duration additional fees for Small Limited Liability Partnerships

Question 6. Without additional fees which period can LLP 11 file under this scheme?

Answer: Under para 3(iv) of the scheme, MCA has not granted open-ended relaxation for filing LLP 11. It is conditional relaxation, as noted below:

Under this scheme, only Form LLP 11 for the financial years 2021–22 and after may be filed without an additional filing fee. 

Form LLP 11 for the fiscal year prior to 2020–21 may be filed with extra fees in this case.

• Two times the duration additional fees for Small Limited Liability Partnerships
• Four times the duration additional fees for Small Limited Liability Partnerships

Note: Ensure that the LLP files LLP 11 within the sequential manner laid on the financial year and date. 

Question 7. What is the time duration of the scheme to receive the advantage?

Answer: From 01.09.2023 onwards till 30.11.2023 these three forms will be available for filing under this scheme (both data inclusive).

As per the LLP Act, 2008, after 30.11.2023 additional fees shall be applicable.

Question 8. Is LLP 3 filing with the same event date again?

Answer: To revise the master data when needed the LLP could again file LLP 3 with the identical event date. 

Question 9.  Can the LLP 11 form be edited?

Answer: The Excel document's prefilled fields can all be modified. A row or column can be added or removed even by LLP.