44ad

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This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

25 August 2011 Dear Sir/madam,

Partnership firm declaring profit u/s 44AD @ 8%.
Query is; should it be after allowing remuneration and interest to the partners or before remuneration and interest on capital. I mean shall we allow remuneration and interest in 8% and pay taxes on the remaining.
Please clarify

In this case, is it necessary to get audited by C.A.

CA PARAS BAFNA

CA PARAS BAFNA (Expert)
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25 August 2011 Turnover ...................4000000
Profit @ 8% ............... 320000
Less :Interest to partner ....20000

Balance.......Book Profit.......300000
Less: Remuneration 270000

Net Profit.............30000
......
No need to get audited in case turnover is less than 60.00 lacs.

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