03 August 2013
Sir I have one client whose turnover is less than 1 crores and profit is also less than 8% but he is not opting for 44AD, now could you please confirm whether he is lible for tax audit. Please also confirm in which case person is lible for tax audit.
03 August 2013
sir but now 44af has been abolished, and 44ad says if you opt for it, you dnt have to maintain a books of accounts and no need for tax audit and 44ab says that if your turnover is more than 1 crore than you are lible for tax audit. but my client have manufaturing business and his turnover is 77 lakh and his profit 530448 as per books, now my question is his turover is not exceeding 1 crore and he is not opting for 44ad also so when i m filing his return then software is saying you are lible for for tax audit. When his turnover is not more then 1 crore then why he is lible for tax audit?
03 August 2013
Swati mam the reason is as simple as that any business showing profits less than 8% and whose turnover doesnt exceeds 1 crore is also liable for tax audit.
03 August 2013
now in every case if his profit is more then exemption limit and turnover less than 1 crore and he is showing profit less then 8% then he is liable for tax audit.
Please confirm what will be the provision for partnership firm? in case of partnership, for rs 1 profit also he is lible for tax audit.
03 August 2013
If Net profit is Re.1, than technically -Audit U/s 44AD(5) vis-a-vis U/s 44AB(d) will be compulsory. . Provision for firms: ---------------------
Show 8% Profit on Turnover. Deduct Interest from it. From the balance deduct salary to partner(Max. salary is allowable as per Section U/s 40(b)) If there is a loss no need to get the accounts audited. If-profit- pay tax @ 30% on such profit. .
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