This discussion clarifies the rules around compulsory audits for partnership firms, particularly when they incur a net loss. It confirms that an audit is required if the firm's profit falls below the prescribed thresholds (6% or 8%), even if the turnover is below certain limits, especially if books of account are maintained under Section 44AA.
12 August 2023
Firm with Turnover Of Rs. 91 Lakhs with Net loss of Rs. 4 lakh it is compulsory to go for audit as firm showing profit less than 6%or 8% as the case may be