LLP Form 8 — which expense goes in which head
Written for LLP partners, not just accountants. General information for financial year 2025‑26. Every LLP is different — show your final signed accounts to your CA before you file.
Form 8 is the yearly form where your LLP reports its accounts to the MCA. It is due 30 October. Part of it is a short income‑and‑expenses page (its full name is the “Statement of Income & Expenditure”). On this page your expenses are split across 12 lines. Each line is called a head. This guide tells you which expense goes on which head, in plain words.
The short version
Put each expense on the line that best matches what it was for — not who you paid.
- Paying staff → Personnel
- Running the office → Administrative
- Getting sales → Selling
- Loan interest → Interest
- Your auditor’s fee → Payment to auditors
- A partner’s own pay → Other expenses (write “Remuneration to partners”)
- Nothing else fits → Other expenses, with a note of what it is
Buying an asset (a machine, a computer), deposits, partner drawings, loan repayments and GST you can claim back are not expenses at all.
Type any expense in the box below to see which line it goes on.
Which Form 8 head? — expense finder
Type any expense — “electricity bill”, “staff salary”, “partner pay”, “audit fee”. It shows you which line of the Form 8 income‑and‑expenses page that spending usually goes on, and the one thing to check first. This is general help, not advice for your exact LLP.
The 12 heads are the lines on the current Form 8 (MCA V3). Which expense goes on which line is our suggestion for grouping — it is not an official MCA list. Before you fill the form: leave out money you spent buying assets, deposits, partner drawings, loan repayments and GST you can claim back. Then make sure your totals match your final signed accounts. When in doubt, ask your CA.
The 12 expense lines, one by one
| The line on Form 8 | Put here | Don’t put here |
|---|---|---|
| Raw material consumed | The raw material, chemicals, parts and basic packing you used up making your product this year | Everything you bought if some is still in stock; GST you can claim back |
| Purchases made for re‑sale | Goods you bought to sell on as they are, after taking off returns and discounts | Material for manufacturing; the change in your closing stock (that has its own line) |
| Consumption of stores and spare parts | Small spares, oil, tools and workshop items you used up | A big spare part that will last for years — that is an asset |
| Power and fuel | Electricity (office, shop or factory), generator diesel, factory gas or fuel, fuel for business vehicles | The deposit with the electricity company; any amount paid in advance |
| Personnel expenses | Staff salary, wages, bonus; your share of PF, ESI; gratuity; staff welfare, tea, training | A partner’s own pay; money you deducted from staff and paid over (PF, TDS) |
| Administrative expenses | Office rent, phone, internet, printing, repairs, software, bank charges, ROC filing fees, and everyday CA / CS / legal fees | Your auditor’s fee; the cost of buying an asset |
| Payment to auditors | This year’s audit fee (even if unpaid), and the auditor’s out‑of‑pocket costs | Book‑keeping or GST work by the same CA — that is Administrative |
| Selling expenses | Ads, Google / Facebook ads, SEO, commission to outside agents, courier and freight to customers, marketplace and payment‑gateway fees | Your sales staff’s salary (that is Personnel); discounts given |
| Insurance expenses | This year’s business insurance premium — fire, theft, stock, vehicle, keyman, staff medical cover | The part of the premium that is for next year |
| Depreciation and amortization | The yearly wear‑and‑tear amount on your building, machines, computers, furniture, vehicles — from your books | The income‑tax depreciation figure (that is only for your tax return) |
| Interest | Interest on a bank loan, OD, CC or vehicle loan; interest on a partner’s capital or loan | The loan repayment itself; loan processing fees and bank‑guarantee commission (those go to Other expenses) |
| Other expenses | Anything with no line of its own — job work, bad debts, penalties, late fees — and a partner’s pay, written as “Remuneration to partners” | Anything one of the 11 lines above already covers; buying an asset |
A few notes on each, with the kind of ledgers that go there:
Raw material consumed
Raw materials, production chemicals, parts and basic packing that go into the product. Enter what you used this year (opening stock + what you bought − closing stock), not the full amount you bought.
Purchases made for re-sale
Goods bought to sell on as they are — trading goods, imported goods for resale. Take off returns, discounts and any GST you can claim back. The change in closing stock is worked out separately.
Consumption of stores and spare parts
Stores, small machine spares, oil and grease, cutting tools, workshop and cleaning items — the amount you actually used up. A big or standby spare part that lasts for years is an asset, not this line.
Power and fuel
Electricity for the office, shop or factory; generator diesel; boiler fuel, gas or coal used in production; fuel for business vehicles. Leave out the deposit you gave the electricity company and any amount paid in advance.
Personnel expenses
Staff salary and wages, overtime, bonus, sales incentive to staff; your share of PF, ESI, NPS; gratuity and leave encashment; staff welfare, canteen, tea, medical reimbursement, uniforms, training, hiring costs. This is staff cost only. Money you deducted from staff (PF, TDS, advances) is not an extra expense. A partner’s pay is not here — see Other expenses.
Administrative expenses
The biggest line for most service LLPs. Office rent and maintenance, repairs to office things, housekeeping, security; printing, stationery, postage, courier; phone, mobile, internet; drinking water; software subscriptions; everyday professional fees — a CA or CS for routine work, book‑keeping, GST or income‑tax return filing, legal advice, LLP filings; ROC filing fees; stamp duty and notary on ordinary papers; trade licence and shop‑licence renewals; professional tax; office travel, taxi, hotel and local conveyance; bank charges, NEFT / RTGS fees, cheque‑book charges.
Payment to auditors
The fee you pay your auditor for the audit — include it even if you have not paid it yet. Also the auditor’s travel or out‑of‑pocket costs. If the same CA also does your accounts or GST returns, that part is Administrative expenses, not this line.
Selling expenses
Advertising in any form — newspaper, hoardings, Google Ads, Facebook / Instagram Ads; SEO and social‑media fees; brochures, catalogues, promotional gifts; commission and brokerage to outside agents; exhibition and stall costs, sponsorships; sales‑team travel; courier and freight to send goods to customers; export freight you pay; marketplace commission and payment‑gateway charges; after‑sales and warranty service; packing to ship goods out. Your sales staff’s own salary still goes under Personnel.
Insurance expenses
This year’s premium on business policies — office, fire, theft, stock, machinery, vehicle, marine, professional indemnity, cyber, keyman; and staff group health or accident cover. If you paid a premium that also covers next year, only this year’s share is an expense.
Depreciation and amortization
The yearly amount you write off for wear‑and‑tear on your assets — building, plant and machinery, computers, furniture, vehicles, and things like software or a trademark. Use the figure from your books. Do not use the income‑tax depreciation figure — that is only for the tax return.
Interest
Interest you paid on a bank loan, cash credit, overdraft, business or vehicle loan, or a finance lease; and interest on a partner’s capital or a partner’s loan. The loan repayment (the principal) is not an expense.
Other expenses
The leftover line. Use it when nothing above fits: job work and outside processing, factory rent, bad debts, a penalty charged in your accounts, loan processing fees, bank‑guarantee or LC commission, GST or TDS late fees. And a partner’s pay — salary, bonus or commission to a partner under the LLP agreement — goes here, written as “Remuneration to partners”. Write a short note of what each item is.
Entries that are NOT an expense
These show up in your books, but they never go on the expenses page. They are either money moving around, or the cost of buying an asset. (Only something that follows from them — the yearly depreciation, or the loan interest — is an expense.)
| Entry | Why it is not an expense |
|---|---|
| Partner drawings, partner’s personal expenses, capital taken out | Just reduces the partner’s capital account |
| Partner’s share of profit | This is profit being shared out — it goes in the “profit transferred to partners” box, lower down |
| Loan repayment (the principal) | You are paying back money you borrowed. Only the interest is an expense |
| Advance to staff, advance to a supplier | You will get goods, work or adjustment against it later — it is not spent yet |
| Rent deposit, electricity deposit | Refundable — you get it back |
| TDS deducted, staff PF / ESI deducted, GST paid to government | Money you collected and passed on for someone else — not your cost |
| Advance tax, self‑assessment tax paid | Payments against your tax bill — they sit with Provision for Tax, not expenses |
| GST you can claim back (input GST) | You get it back by setting it off — not a cost |
| Buying a computer, furniture, machine, vehicle or building | This is buying an asset. Only the yearly depreciation on it is an expense |
| Insurance / rent / subscription paid in advance | The part for next year is not this year’s expense |
Entries where you have to look at the bill
For these, the account name alone will not tell you where it goes. Look at the actual bill, split it if it covers more than one thing, and put each part where it belongs.
- “Miscellaneous expenses”, “General expenses”, “Sundry expenses”, “Service charges”, “Consultancy charges” — open the bills, sort them by what they were for, and use the real lines.
- Reimbursement to a partner or a staff member — goes wherever the underlying spend goes (travel → Administrative or Selling; materials → the material line).
- Sales discount, sales return, purchase discount, purchase return — these usually adjust your sales or purchases, they are not an expense.
- GST you cannot claim back (blocked) — add it to whatever it relates to (an expense, stock, or an asset).
- Website work, trademark registration, office renovation, pre‑launch costs — first decide: is it a running cost, or are you building something lasting (an asset)? Then choose the line.
The confusing ones, settled
| Expense | Line | Why |
|---|---|---|
| A partner’s salary / pay / bonus | Other expenses | Write it as “Remuneration to partners”. It is not staff salary and not the profit share. |
| Interest on a partner’s capital or loan | Interest | It is interest — so it goes on the Interest line, not Other expenses. |
| Your auditor’s fee | Payment to auditors | Even if the same CA also does other work — split the bill, only the audit part goes here. |
| Depreciation | Depreciation and amortization | Use the books figure, never the income‑tax figure. |
| Income tax and deferred tax | Provision for Tax | Its own box below profit before tax — not an expense line. |
| Office electricity | Power and fuel | It has its own line now — it is no longer part of Administrative. |
| Bank charges vs loan interest | Administrative vs Interest | Account and transaction charges → Administrative. Only loan interest → Interest. |
| Freight | Selling, or a material line | To send goods out → Selling. To bring material or stock in → that material line. |
Six rules that sort out the hard cases
- Take out the non‑expenses first. Before you group anything, remove asset purchases, deposits, partner drawings, loan repayments and GST you can claim back.
- This year, and bills received. Include a bill you have received but not yet paid. Leave out anything paid in advance for next year. Don’t just enter what left the bank.
- Before TDS, after claimable GST. The TDS you deducted from a payment is not a second expense. GST you can claim back is not a cost.
- Split a mixed bill. One bill can have a professional fee, an audit fee, a filing fee and some travel — separate them.
- What it was for, not who you paid. A CA’s bill is not always “Payment to auditors”. A reimbursement follows whatever it was spent on.
- Match your signed accounts. Your totals — expenses, profit before tax, tax, profit after tax — must agree with the accounts your partners signed.
Why some guides show only 7 lines
The MCA changed the LLP portal (from “V2” to “V3”). The old form grouped expenses into 7 lines; the new one has 12 — a few things that used to be lumped together now have their own line. If an older guide’s list looks short, that is why.
| Old form (7 lines) | Current form (12 lines) |
|---|---|
| Purchases | Raw material consumed · Purchases made for re‑sale · Consumption of stores and spare parts |
| (was inside Administrative / Other) | Power and fuel · Payment to auditors · Insurance expenses — now their own lines |
| Personnel / Administrative / Selling | Personnel / Administrative / Selling (same) |
| Depreciation | Depreciation and amortization |
| Interest | Interest |
| Other expenses | Other expenses (with a note of what it is) |
The line names here are from the current V3 form. The MCA updates the portal from time to time, so check the live form for the year you are filing.
Common questions
How many expense lines does LLP Form 8 have?
Twelve, on the current Form 8. The old form had only seven, so older guides show a shorter list.
Which line does the electricity bill go on in Form 8?
Power and fuel. It has its own line now, whether the meter is for the office, the shop or the factory. The deposit you paid the electricity company is not an expense — it is money you will get back.
Where does a partner’s salary or remuneration go in Form 8?
On the Other expenses line, written as “Remuneration to partners”. It is not staff salary (that is Personnel expenses) and it is not the profit you share out at year‑end. Interest on a partner’s capital goes on the Interest line.
Where do partners’ drawings go in Form 8?
Nowhere on the expenses page. Drawings just reduce the partner’s capital account. They are not a business expense.
Is the audit fee shown separately in Form 8?
Yes. There is a line called Payment to auditors. Put this year’s audit fee there, even if you have not paid it yet. If the same CA also does your book‑keeping or GST returns, that part goes under Administrative expenses instead.
Does the “Other expenses” line need a break-up?
Yes. The MCA instruction kit says any item that does not fit a named line goes in “Others” with a short note of what it is and the amount. Do not just put one lump figure.
Should depreciation in Form 8 be the books figure or the income-tax figure?
The books figure, from your accounting policy. The income‑tax depreciation figure is only for your tax return, not for Form 8.
Is the turnover figure in Form 8 with GST or without GST?
Without GST. GST you collected is money you owe the government, not your income. Use the same turnover figure that is in your accounts and your income‑tax return.
What do I put in a Form 8 box that does not apply to my LLP?
Put zero. The instruction kit says enter zero for any box that does not apply, and for your first Form 8 put zero in the previous‑year columns.
In what units do I enter Form 8 figures?
In rupees. If your accounts are in lakhs or thousands, convert to rupees before entering.
Does Form 8 have to match my signed accounts?
Yes. Your total expenses, profit before tax, tax and profit after tax in Form 8 should match the accounts your two designated partners signed. You can group the small items differently, but the totals must agree.
Where does a GST late fee go in Form 8?
On the Other expenses line, with a note saying what it is. Interest on late GST, TDS or income‑tax is also usually Other expenses — it is not the Interest line, which is only for loans. Check how your signed accounts show it.
Where do bank charges go — Interest or somewhere else?
Bank account charges, NEFT and RTGS fees and cheque‑return charges go under Administrative expenses. Only interest on a loan, OD or CC — and interest on a partner’s capital or loan — goes on the Interest line. Loan processing fees and bank‑guarantee commission go under Other expenses.
Where does freight go in Form 8?
Freight and courier to send goods to customers goes under Selling expenses. Freight to bring in raw material is part of Raw material consumed; freight to bring in goods for resale is part of Purchases made for re‑sale.
Is buying a computer or furniture an expense in Form 8?
No. Buying it counts as buying an asset, not a running cost. Only the yearly wear‑and‑tear (depreciation) on it is an expense, on the Depreciation and amortization line.
Where do professional fees go in Form 8?
Everyday professional fees — advice, company‑secretary work, accounts, return filing — go under Administrative expenses. Your auditor’s fee goes under Payment to auditors. A fee to buy an asset or for a big project is added to that asset’s cost, not expensed.
Where does website or trademark registration cost go in Form 8?
It depends. If it creates something lasting — a proper website, a registered trademark — it is an asset, and only the yearly amount written off is an expense. If it is small or clearly a running cost, it can be an expense, usually Other expenses or Selling expenses. Decide from the bill, not the account name.
Where does insurance go in Form 8?
On its own line, Insurance expenses — for this year’s business premium (fire, theft, stock, vehicle, keyman, staff medical). If you paid ahead for next year, only this year’s share counts.
Where does interest on a partner’s capital go in Form 8?
On the Interest line. Keep it separate from the partner’s remuneration (Other expenses) and from the profit share.
Are Provision for Tax and profit to partners expense lines?
No. Provision for Tax (income tax and deferred tax) is its own box below profit before tax. Profit transferred to partners is the profit being shared out. Neither is an expense.
Does a dormant or loss-making LLP still fill this page?
Yes. Every LLP has to file Form 8 whatever its turnover or activity. Enter your real figures and put zero where a box does not apply. Form 8 is due 30 October each year.
One bill covers two different things — where does it go in Form 8?
Split it. Put each part on its own line — travel on Administrative or Selling, materials on the material line, and so on. Do not put the whole bill on one line just because it was one payment or one person.
Related
- LLP Form 8 — what it is, who signs it, what to attach
- LLP Compliance Calendar — every due date
- LLP Late Fee Calculator — what a late Form 8 or Form 11 costs
- How to file LLP Form 11
- When does an LLP need an audit?
- Which form registers a charge for an LLP?
Where this comes from: the 12 lines are the ones on the current Form 8 (MCA V3) income‑and‑expenses page. The rules about the “Others” note, entering figures in rupees, and zero for boxes that do not apply are from the MCA Instruction Kit for LLP Form No. 8. Which expense goes on which line is our suggestion for grouping — it is not an official MCA list. Check the live form and your signed accounts before you file.