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..
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.
Message likes :
1 times
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.
Message likes :
1 times
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.
Yes in this case 6% profit you are liable for tax audit.
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- Section 54F - Exemption on LTCG in 2026 for HP purchased in 2023
- STCG....................................................
- TAN for Partnership
- Treatment of Pension ?annuity returns on PMVY
- AMOUNT RECEIVED UNDER COMPULOSRY ACQUISITION OF AGRICULTURAL LAND
- Last year TDS Claim
- AY 26-27 ITR-4 FILING U/S 44-ADA
- Plot of land. Cost of Acquisition
- LTCG for Assmt year 26-27
- Long Term Service award taxability in hands of company
- Gst invoice numbering and delivery challan numbering
- Standard Deduction claim for EPFO Pension and ICICI Prudential Life Annuity
- Small dealers gst returns filing
- Sales amount in Gstr1
- CG after sale of flat
- E Commerce GSTR1 & 3B how to file
- GST Cancellation without jurisdiction
- Legal Opinion on Registrar's Refusal to Investigate a Society for Non-Renewal and Non-Compliance
- GST Refund_RFD-01
- Form10BD was uploaded successfully without any Error but after 24 hours, Form10BE are not available
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
