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Income tax audit applicability for pvt co. who made loss

This query is : Resolved 

10 September 2014 If a Private Company makes a loss in Previous Year then is it Compulsory to do Tax Audit.

Total Turnover of Company is just INR 26,000/-
( Twenty Six Tousands only).
&
It incurred loss of -9000/-

10 September 2014 no, as only if gross turnover exceeds rs 1 crore in caes of business then only

10 September 2014 But one of my friend said that, when Turnover is less than 1Cr in Company then Sec. 44AD is applicable.

I read Section 44AD & 44AB but not understood the same clearly.




10 September 2014 Company's nature of business is Accounting Services

10 September 2014 in case of loss there is no applicability of sec 44AD

10 September 2014 Thank You,
But
I not understood Sec. 44AB's Clause (d)

Kindly explain the same

10 September 2014 tell me what u didnt understood???????????

10 September 2014 I NOT UNDERSTOOD THIS SENTENCE OF SECT 44AB
"Provided further that] in a case where such person is required by or under any other law to get his accounts audited 34[***], it shall be sufficient compliance with the provisions of this section if such person gets the accounts of such business or profession audited under such law before the specified date and 35[furnishes by] that date the report of the audit as required under such other law and a further report 36[by an accountant] in the form prescribed under this section"




10 September 2014 firstky 34,35 n 36 are those given as bookmark

secondly it is referring to audit if any already done under any other law like co act or under any other act then no need to do audit u/s 44AB

10 September 2014 So the Statutory Audit of this company is enough ?

10 September 2014 yes if u read it after my prev reply then u will understand

10 September 2014 And if Assessee is Partnership Firm

Gross Turnover is 63 lakhs
& Net Profit(NPBT) is 27,000/- (0.42%)

As Net Profit is Below 8% in this case

is Tax Audit Compulsory ?




10 September 2014 then tax audit is necessary since there is gross turnover +ve and profit is below 85 hence sec 44 ad is applicable



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