LLP-Delay Annual filing- compounding ?

[VENKAT S]

If a LLP fails to file annual returns for six years consequently, can it apply under compounding scheme and minimise the fees payble by it ?

[DR.MARIAPPAN GOVINDARAJAN]

In my view it can be compounded.

[YAGAY andSUN]

39. Compounding of offences. - The Central Government may compound any offence under this Act which is punishable with fine only, by collecting from a person reasonably suspected of having committed the offence, a sum which may extend to the amount of the maximum fine prescribed for the offence.

AI Summary

Compounding of offences: LLP non filing of annual returns may be addressed by compounding to limit payable fees. Whether an LLP's six year failure to file annual returns can be addressed under the compounding of offences mechanism to reduce fees. One advisor states it can be compounded; another cites that the Central Government may compound offences that are punishable with fine only by collecting a sum up to the maximum prescribed fine.