The mandatory compliance requirement of a partnership firm mainly includes tax compliance and return filing. Further, it is not compulsory for a partnership firm to file its annual accounts with the registrar of companies.
Partnership firm is a form of business where two or more persons have agreed to come together to share profits and losses of the business. Further, the legal identity of the partnership firm is not distinct from its members. The annual compliance requirement of the partnership firm is very similar to the compliance requirement of the proprietorship firm.
The annual compliance for the partnership mainly includes the filing of income tax returns. As per Income Tax Act, Partnership Firm has to close its financial year as on 31st March every year and have to file the returns with Income Tax Department. Further, in case of Partnership whose annual turnover is more than Rs.100 Lakhs, the accounts have to be audited as required under Income Tax Act as well. In addition to this, the partnership firm is also liable to obtain GST registration and file the returns in case its turnover exceeds the threshold limit.
Documents required for annual compliance of partnership firm are as follows-
1. Invoices of sales and purchases occurred during the year.
2. Invoices of expenses incurred during the year
3. Bank statement
4. Copy of TDS challan deposited
5. Copy of TDS returns filed