{"id":1129,"date":"2026-03-24T00:00:00","date_gmt":"2026-03-24T00:00:00","guid":{"rendered":"https:\/\/rize.blog.razorpay.in\/llp-audit-applicability-limits-requirement\/"},"modified":"1970-01-01T00:00:00","modified_gmt":"1970-01-01T00:00:00","slug":"llp-audit-applicability-limits-requirement","status":"publish","type":"post","link":"https:\/\/razorpay.com\/rize\/blogs\/llp-audit-applicability-limits-requirement\/","title":{"rendered":"LLP Audit Applicability: Limits, Requirements &#038; Importance"},"content":{"rendered":"<div data-rt-embed-type='true'>\n<style type=\"text\/css\">\n.key-takeaways-box {\n  border: 1px solid #D9DEE7;\n  border-radius: 8px;\n  background-color: #FFFFFF;\n  margin: 32px 0;\n  overflow: hidden;\n}<\/p>\n<p>\/* Header: H2 but visually unchanged *\/\n.key-takeaways-box h2.key-takeaways-header {\n  font-family: 'DM Sans', sans-serif;\n  font-weight: 500;\n  font-size: 1.25rem;\n  line-height: 1.4;\n  background-color: #0D1835;\n  color: #FFFFFF;\n  padding: 14px 20px;\n  margin: 0;\n}<\/p>\n<p>\/* Body: DM Sans, 400 *\/\n.key-takeaways-content {\n  font-family: 'DM Sans', sans-serif;\n  font-weight: 400;\n  font-size: 1rem;\n  line-height: 1.5;\n  color: #0E1835;\n  padding: 20px 22px;\n}<\/p>\n<p>.key-takeaways-content ul {\n  margin: 0;\n  padding-left: 18px;\n}<\/p>\n<p>.key-takeaways-content li {\n  margin-bottom: 14px;\n}<\/p>\n<p>.key-takeaways-content li:last-child {\n  margin-bottom: 0;\n}\n<\/style>\n<div class=\"key-takeaways-box\">\n<h2 class=\"key-takeaways-header\">\n    Key Takeaways<br \/>\n  <\/h2>\n<div class=\"key-takeaways-content\">\n<ul>\n<li>\n        Under the LLP Act, a statutory audit is required only if turnover > \u20b940 lakh or capital contribution > \u20b925 lakh in a financial year.\n      <\/li>\n<li>\n        An LLP must maintain proper books of account and file annual compliance forms (Form 8 &#038; Form 11).\n      <\/li>\n<li>\n        An Income Tax Act audit (tax audit) may apply if turnover exceeds \u20b91 crore or professional receipts exceed \u20b950 lakh (subject to cash transaction conditions).\n      <\/li>\n<li>\n        An audit ensures financial accuracy, transparency, and regulatory compliance, and protects LLP stakeholders.\n      <\/li>\n<li>\n        Non-compliance can lead to penalties and legal consequences.\n      <\/li>\n<\/ul><\/div>\n<\/div>\n<\/div>\n<h2><strong>What Is an LLP Audit?<\/strong><\/h2>\n<p>An <strong>LLP audit<\/strong> is a formal examination of the LLP\u2019s financial records, books of accounts, and statements by a qualified auditor (typically a Chartered Accountant). The objective is to verify that the LLP\u2019s accounts are <strong>accurate, complete, and compliant with applicable laws<\/strong>.<\/p>\n<p>It ensures that the LLP reflects a <strong>true and fair view of its financial position and solvency<\/strong>, as required under the Limited Liability Partnership Act, 2008.<\/p>\n<h3><strong>Statutory Audit vs Tax Audit<\/strong><\/h3>\n<ul>\n<li><strong>Statutory audit<\/strong>: Triggered under the LLP Act based on turnover or capital contribution thresholds.<\/li>\n<li><strong>Tax audit<\/strong>: Triggered under Section 44AB of the Income Tax Act when turnover or receipts cross specified limits.<\/li>\n<li><strong>Both audits may apply<\/strong> independently if an LLP crosses both sets of thresholds.<\/li>\n<\/ul>\n<h2><strong>LLP Audit Applicability Under the LLP Act<\/strong><\/h2>\n<p>The LLP law clearly defines when an audit becomes mandatory. Unlike companies, LLPs enjoy <strong>relaxed compliance requirements<\/strong>, making audits conditional rather than universal.<\/p>\n<p><strong>Turnover and Contribution Limits<\/strong><\/p>\n<ul>\n<li>Statutory audit is mandatory if <strong>turnover exceeds \u20b940 lakh<\/strong> in a financial year<\/li>\n<li>Statutory audit is mandatory if the <strong>capital contribution exceeds \u20b925 lakh<\/strong><\/li>\n<li>If both turnover and contribution are below these limits, an audit is <strong>not mandatory<\/strong>, though LLPs may opt for a voluntary audit<\/li>\n<\/ul>\n<h3><strong>Legal Basis \u2013 Section 34 &amp; Rule 24<\/strong><\/h3>\n<p>Audit applicability is governed by:<\/p>\n<ul>\n<li>Section 34(4) of the Limited Liability Partnership Act, 2008<\/li>\n<li>Rule 24(8) of the Limited Liability Partnership Rules, 2009<\/li>\n<\/ul>\n<p>These provisions define how LLPs must maintain books and when audits become compulsory.<\/p>\n<h3><strong>What Records Must Be Maintained<\/strong><\/h3>\n<ul>\n<li>Books of account (cash or accrual basis)<\/li>\n<li>Statement of Account &amp; Solvency (<strong>Form 8<\/strong>)<\/li>\n<li>Annual Return (<strong>Form 11<\/strong>)<\/li>\n<li>Records must be retained at the registered office for the prescribed period<\/li>\n<\/ul>\n<div data-rt-embed-type='true'>\n<style type=\"text\/css\">\n.did-you-know-box {\n  border: 1px solid #D9DEE7;\n  border-radius: 8px;\n  background-color: #FFFFFF;\n  margin: 32px 0;\n  overflow: hidden;\n}<\/p>\n<p>\/* Header row *\/\n.did-you-know-header {\n  font-family: 'DM Sans', sans-serif;\n  font-weight: 500;\n  font-size: 1.25rem;\n  line-height: 1.4;\n  background-color: #0D1835;\n  color: #FFFFFF;\n  padding: 14px 20px;\n}<\/p>\n<p>\/* Content row *\/\n.did-you-know-content {\n  font-family: 'DM Sans', sans-serif;\n  font-weight: 400;\n  font-size: 1rem;\n  line-height: 1.5;\n  color: #0E1835;\n  padding: 18px 22px;\n}<\/p>\n<p>.did-you-know-content ul {\n  margin: 10px 0 0 0;\n  padding-left: 18px;\n}<\/p>\n<p>.did-you-know-content li {\n  margin-bottom: 10px;\n}<\/p>\n<p>.did-you-know-content li:last-child {\n  margin-bottom: 0;\n}\n<\/style>\n<div class=\"did-you-know-box\">\n<div class=\"did-you-know-header\">\n    Did You Know?\n  <\/div>\n<div class=\"did-you-know-content\">\n    Many LLPs assume audit applicability depends only on turnover, but that\u2019s not true.<\/p>\n<ul>\n<li>Audit is triggered if either turnover OR capital contribution exceeds limits<\/li>\n<li>LLPs below both thresholds can still opt for a voluntary audit<\/li>\n<li>Proper audits significantly help during fundraising, due diligence, and partnerships<\/li>\n<\/ul><\/div>\n<\/div>\n<\/div>\n<h2><strong>Income Tax Audit for LLPs<\/strong><\/h2>\n<p>Apart from the LLP Act, LLPs may also be required to undergo a <strong>tax audit<\/strong> under Section 44AB of the Income Tax Act, 1961.<\/p>\n<p>This audit is focused on <strong>tax compliance<\/strong>, not just financial accuracy.<\/p>\n<h3><strong>Turnover Thresholds for Tax Audit<\/strong><\/h3>\n<ul>\n<li>Business turnover &gt; \u20b91 crore: Tax audit mandatory<\/li>\n<li>If cash transactions are \u2264 5% of total transactions, the threshold increases to <strong>\u20b910 crore<\/strong><\/li>\n<li>Professional receipts &gt; \u20b950 lakh: Tax audit applicable<\/li>\n<\/ul>\n<h3><strong>Filing Due Dates<\/strong><\/h3>\n<ul>\n<li>Tax audit report due by <strong>30 September<\/strong> following the financial year<\/li>\n<li>Income Tax Return due by <strong>31 October \/ 30 November<\/strong> (depending on applicability)<\/li>\n<\/ul>\n<h2><strong>Importance of LLP Audit<\/strong><\/h2>\n<p>Even when not mandatory, audits offer significant strategic value.<\/p>\n<p><strong>Ensuring Financial Accuracy<\/strong><\/p>\n<p>Audits verify that financial records are <strong>error-free and reliable<\/strong>, helping prevent fraud, misstatements, and operational inefficiencies.<\/p>\n<p><strong>Legal &amp; Regulatory Compliance<\/strong><\/p>\n<p>Conducting audits ensures that the LLP remains compliant with both corporate and tax laws, reducing the risk of <strong>penalties and notices<\/strong>.<\/p>\n<p><strong>Credibility for Stakeholders<\/strong><\/p>\n<p>Audited financials improve trust among:<\/p>\n<ul>\n<li>Investors<\/li>\n<li>Banks and lenders<\/li>\n<li>Vendors and partners<\/li>\n<\/ul>\n<p>This is especially important for LLPs looking to <strong>scale or raise capital<\/strong>.<\/p>\n<h2><strong>Process of Conducting an LLP Audit<\/strong><\/h2>\n<h3><strong>Appointing an Auditor<\/strong><\/h3>\n<ul>\n<li>Must appoint a <strong>Chartered Accountant (CA)<\/strong> in practice<\/li>\n<li>Appointment timeline:<br \/>\u200d\n<ul>\n<li>First year: before the end of the financial year<\/li>\n<li>Subsequent years: at least 30 days before the financial year ends<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<p><strong>Audit Preparation<\/strong><\/p>\n<ul>\n<li>Organise books of accounts<\/li>\n<li>Prepare financial statements<\/li>\n<li>Share relevant documents with the auditor<\/li>\n<\/ul>\n<h3><strong>Filing Audit Reports and Compliance Forms<\/strong><\/h3>\n<ul>\n<li>File <strong>Form 8<\/strong> (with audit attachment, if applicable)<\/li>\n<li>File <strong>Form 11<\/strong> (annual return)<\/li>\n<li>Submit tax audit reports (<strong>Form 3CA\/3CB &amp; 3CD<\/strong>) if applicable<\/li>\n<\/ul>\n<h2><strong>Razorpay Rize for LLP Registration&nbsp;<\/strong><\/h2>\n<p>Razorpay Rize is your trusted partner in simplifying and redefining the company registration journey. You can seamlessly register your company at the lowest rates, anytime and anywhere.<\/p>\n<p>What is included in our package?<\/p>\n<ol>\n<li>Company Name Registration<\/li>\n<li>2 <a href=\"https:\/\/razorpay.com\/rize\/blogs\/digital-signature-certificate-dsc\/\">Digital Signature Certificates<\/a><\/li>\n<li>2 Directors\u2019 Identification Numbers<\/li>\n<li><a href=\"https:\/\/razorpay.com\/rize\/company-registration\/document-required\/certificate-of-incorporation\">Certificate of Incorporation<\/a><\/li>\n<li><a href=\"https:\/\/razorpay.com\/rize\/company-registration\/document-required\/moa\">MoA<\/a> &amp; <a href=\"https:\/\/razorpay.com\/rize\/company-registration\/document-required\/aoa\">AoA<\/a> (Applicable for Private Limited Companies and OPCs)<\/li>\n<li><a href=\"https:\/\/razorpay.com\/rize\/company-registration\/document-required\/llp-agreement\">LLP Agreement<\/a> (Applicable for LLPs)<\/li>\n<li>Company <a href=\"https:\/\/razorpay.com\/rize\/company-registration\/document-required\/e-pan\">PAN<\/a> &amp; <a href=\"https:\/\/razorpay.com\/rize\/company-registration\/document-required\/e-tan\">TAN<\/a><\/li>\n<\/ol>\n<p>*May include additional documents depending on the type.<\/p>\n<h2><strong>Frequently Asked Questions (FAQs)<\/strong><\/h2>\n","protected":false},"excerpt":{"rendered":"<p>A detailed legal guide to LLP audit requirements under Section 34 of the LLP Act. Explore the \u20b940L turnover and \u20b925L contribution limits for mandatory audits.<\/p>\n","protected":false},"author":1,"featured_media":1130,"comment_status":"closed","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[1],"tags":[],"class_list":["post-1129","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-uncategorized"],"acf":[],"_links":{"self":[{"href":"https:\/\/razorpay.com\/rize\/blogs\/wp-json\/wp\/v2\/posts\/1129","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/razorpay.com\/rize\/blogs\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/razorpay.com\/rize\/blogs\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/razorpay.com\/rize\/blogs\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/razorpay.com\/rize\/blogs\/wp-json\/wp\/v2\/comments?post=1129"}],"version-history":[{"count":1,"href":"https:\/\/razorpay.com\/rize\/blogs\/wp-json\/wp\/v2\/posts\/1129\/revisions"}],"predecessor-version":[{"id":1374,"href":"https:\/\/razorpay.com\/rize\/blogs\/wp-json\/wp\/v2\/posts\/1129\/revisions\/1374"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/razorpay.com\/rize\/blogs\/wp-json\/wp\/v2\/media\/1130"}],"wp:attachment":[{"href":"https:\/\/razorpay.com\/rize\/blogs\/wp-json\/wp\/v2\/media?parent=1129"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/razorpay.com\/rize\/blogs\/wp-json\/wp\/v2\/categories?post=1129"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/razorpay.com\/rize\/blogs\/wp-json\/wp\/v2\/tags?post=1129"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}