Automated Data Entry into Tally, Zoho Books, Quickbooks Certificate in Quantitative Finance

Applicability of tax audit in case of partnership firm

This query is : Resolved 

19 August 2018 Suppose my net profit is 50000 after deducting depreciation of 2% and my net profit ratio is 8%, now while filing of return I have claimed depreciation @10% and my taxable profit goes down to 30000 and my net profit ratio goes below 8%.
Please guide whether my approach is correct. Also please suggest whether there is need to book deferred tax and in this case am I liable to tax audit.

Please guide experts..

19 August 2018 Yes tax audit applicable.

19 August 2018 Please sir share the rationale ..



19 August 2018 Declaring less than 8% profit. Maintaining books of accounts go for audit or declare 8% profit.

19 August 2018 Thanks sir, one last query the 8% should be after deducting interest on capital or before that ? Suppose before deducting my net profit ratio is 8.2 % and after deducting interest on capital it is coming to 6 %. So in this case am I liable for tax audit ?

20 August 2018 8% after deducting interest on capital.
Yes in this case 6% profit you are liable for tax audit.



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