44AD for firm
This query is : Resolved
11 February 2011
If Section 44AD is applied for firm and presumptive income is declared @ 8% and actual net profit of firm is more than 8%, then how the capital account balance of firm in the books of individual partner will tally with that in the books of firm?
because partner must have debited share of full net profit (and not @ 8%) in his books.
because partner must have debited share of full net profit (and not @ 8%) in his books.
13 February 2011
In case Profit is higher than 8% of Gross
Receipts , the assessee has to show higher profits at a rate which is higher than 8%.
So, in case higher profit has been shown in the books, firm has to declare its actual profit.
Receipts , the assessee has to show higher profits at a rate which is higher than 8%.
So, in case higher profit has been shown in the books, firm has to declare its actual profit.
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15 February 2011
Dear Sir,
But is it obligatory to disclose higher income than 8% in the books of accounts of the firm?
But is it obligatory to disclose higher income than 8% in the books of accounts of the firm?
15 February 2011
Yes , It is obvious to show, as in the act it has been mentioned that the assessee has to show profits @ 8% or at a higher rate.
If you do not want to show profit at higher rate, provide certain expenditure which are either left or can be shown as related with the work carried on, so as to maintain the profit level.
If you do not want to show profit at higher rate, provide certain expenditure which are either left or can be shown as related with the work carried on, so as to maintain the profit level.
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