44ad - how to check tax audit applicability

This query is : Resolved

CA Kunjan - www.canaresh.com (Querist)
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16 May 2016 HOW TO CHECK TAX AUDIT APPLICABILITY IF TURNOVER OF FIRM IS LESS THAN 1 CRORE FOR FIN.16-17?
According to me, for
asst. year 16-17 ---> 8% of turnover was to be compared with profit before deducting interest and remuneration to partners
asst.17-18 --> 8% of turnover has to be compared with profit after deducting int and remuenration , am i correct?

also for above firm, for asst. 17-18, no deduction of int and remuneration to partners is allowed , if tax audit is not required, correct?

its really confusing, can anyone guide,
regards, ca kunjan, 9222922292, mumbai

Rupesh Jain

Rupesh Jain (Expert)
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16 May 2016 yes you are correct in 2017-18 interest on remuneration, intt not deducting for the year . and for audit also this deduction allowed.

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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16 May 2016 For AY 16-17, 8% of turnover was to be declared before deducting interest and remuneration to partners.
For AY 17-18 8% of turnover has to be declared after deducting interest and remuneration to partners.
You are right, for AY 17-18 no deduction of int and remuneration to partners is allowed from 8% profit.

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