Audit of a firm
This query is : Resolved
VINAY SACHDEVA
(Querist)
15 November 2017
A Partnership firm engaged in the trading of Sanitary goods having Turnover Rs. 48.50 Lacs for the financial year 2016-2017.
Was the said firm liable for Tax Audit.
If yes, plz tell the way as they have not filed their ITR and Tax Audit before 7th Nov 2017.
Can they file their ITR U/S 44AD without Audit.
Firm is having Net Profit Rs. 4500/- . Partner's Remuneration Rs. 144000/- Interest on Capital Rs. 332802/- total of all is more than 8% of Turnover
Was the said firm liable for Tax Audit.
If yes, plz tell the way as they have not filed their ITR and Tax Audit before 7th Nov 2017.
Can they file their ITR U/S 44AD without Audit.
Firm is having Net Profit Rs. 4500/- . Partner's Remuneration Rs. 144000/- Interest on Capital Rs. 332802/- total of all is more than 8% of Turnover
Amol S Joglekar
(Expert)
15 November 2017
for filing return under 44AD, you need to show a profit after partners' interest, commission, salary, bonus etc.8% of turnover....try to find out the trade off between paying the tax on 8 % of 4850,000 versus tax audit fee + penalty for ate filing and take the decision
VINAY SACHDEVA
(Querist)
15 November 2017
Amol sir plz define in brief. What is he right way for the assesse.
Amol S Joglekar
(Expert)
15 November 2017
the one which involves lees amount of cash outlay is right way
Amol S Joglekar
(Expert)
15 November 2017
opting for 44AD....8% of 48,50,000/- = 388,000
tax on the same = 30% of 388,000 = 116,400/-
plus you need to pay interest for late filing, non payment of advance tax etc.
As against this, if you go by regular profit.... late filing of tax audit report 24250 + fee for tax audit (i am neither aware how much you pay for your tax audit nor i am interested in knowing)+ return filing fee (i am neither aware how much you pay nor interested in knowing) + tax 30% of 4500 (assuming partner's salary is fully allowable)
So to say you need to find out the pay off between two
tax on the same = 30% of 388,000 = 116,400/-
plus you need to pay interest for late filing, non payment of advance tax etc.
As against this, if you go by regular profit.... late filing of tax audit report 24250 + fee for tax audit (i am neither aware how much you pay for your tax audit nor i am interested in knowing)+ return filing fee (i am neither aware how much you pay nor interested in knowing) + tax 30% of 4500 (assuming partner's salary is fully allowable)
So to say you need to find out the pay off between two
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VINAY SACHDEVA
(Querist)
15 November 2017
Thanks a lot Amol sir 4 u r advice .
Amol S Joglekar
(Expert)
15 November 2017
you are most welcome....
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