Audit of a firm
This query is : Resolved
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
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
15 November 2017
Amol sir plz define in brief. What is he right way for the assesse.
15 November 2017
the one which involves lees amount of cash outlay is right way
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
Message likes :
1 times
15 November 2017
Thanks a lot Amol sir 4 u r advice .
15 November 2017
you are most welcome....
Message likes :
1 times
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
- House Property Reporting in ITR
- Internship/Academic shown in Salary Pay Slip of a Doctor
- TDS Claim year
- Liable to deduct tds and 44ADA
- Refund of 20%pre-deposit paid for stay application
- Rent lease agreement
- Relief u/s Section 89
- TDS Challan Code
- Nomination of Bank for refund in itr 2
- Section 56(2) of the Income tax Act 1961 , Gift to relative .
- Supply through E-commerce Operators
- STCG on ETF gold & silver
- 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
- Annexure B utility for GST Refund
- Tax amount diff in Gstr1 and 3B in tax compare reports
- Tds on GST in connection with sale to public company
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
CAclubindia
