Audit

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Querist : Anonymous

Querist : Anonymous (Querist)

21 September 2014 IF A PROFESSIONAL PARTNERSHIP FIRM RENDERING SITE TESTING SERVICES TO CONSTRUCTION COMPANIES HAS A TURNOVER OF 12.00 LACS APPROX
1. WILL IT REQUIRE AUDIT IF PROFIT IS ABOVE 8 %
2. IF NO THEN WHAT SECTION OF INCOME TAX SAYS SO.
3. WILL REMUNERATION TO PARTNERS BE ALLOWABLE FROM THIS PROFIT.
EG
TO-12.00 LACS
PROFIT:1.00 LACS BEFORE PARTNERS SALARY & INTEREST AS PER DEED

Nikhil Kaushik

Nikhil Kaushik (Expert)

21 September 2014 as long as turnover is below the tax audit limit ie Rs 1 cr and you are not covered under the professions prescribed under section 44AA(1), 44AD applies to you.

Yes remuneration to partner is allowed.

Querist : Anonymous

Querist : Anonymous (Querist)

21 September 2014 THE FIRM IS COVERED UNDER 44AA(1) AS IT IS A TECHNICAL CONSULTANCY FIRM.

Nikhil Kaushik

Nikhil Kaushik (Expert)

21 September 2014 then no. 44AD wont apply by virtue of section 44AD(6)(i)

Querist : Anonymous

Querist : Anonymous (Querist)

21 September 2014 YES BUT SIR I WANT TO KNOW IF 44AD IS NOT APPLICABLE & TURNOVER IS ALSO BELOW 25.00 LACS ,THEN WHAT PROVISION OF INCOME TAX IS APPLICABLE FOR DETERMINING AUDIT & PROFITABILITY

Nikhil Kaushik

Nikhil Kaushik (Expert)

21 September 2014 then there are no provisions...since 44AA is applicable, you need to prepare the financial statements but tax audit wont apply as audit is triggered at 25 lakhs turnover in case of professionals. The profitability wont be guided by 44AD and needs to be arrived at after assessment of the books of accounts.

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