Income tax audit applicability for pvt co. who made loss
This query is : Resolved
Suresh Yadav
(Querist)
10 September 2014
If a Private Company makes a loss in Previous Year then is it Compulsory to do Tax Audit.
Total Turnover of Company is just INR 26,000/-
( Twenty Six Tousands only).
&
It incurred loss of -9000/-
Total Turnover of Company is just INR 26,000/-
( Twenty Six Tousands only).
&
It incurred loss of -9000/-
10 September 2014
no, as only if gross turnover exceeds rs 1 crore in caes of business then only
Suresh Yadav
(Querist)
10 September 2014
But one of my friend said that, when Turnover is less than 1Cr in Company then Sec. 44AD is applicable.
I read Section 44AD & 44AB but not understood the same clearly.
I read Section 44AD & 44AB but not understood the same clearly.
Suresh Yadav
(Querist)
10 September 2014
Company's nature of business is Accounting Services
10 September 2014
in case of loss there is no applicability of sec 44AD
Suresh Yadav
(Querist)
10 September 2014
Thank You,
But
I not understood Sec. 44AB's Clause (d)
Kindly explain the same
But
I not understood Sec. 44AB's Clause (d)
Kindly explain the same
10 September 2014
tell me what u didnt understood???????????
Suresh Yadav
(Querist)
10 September 2014
I NOT UNDERSTOOD THIS SENTENCE OF SECT 44AB
"Provided further that] in a case where such person is required by or under any other law to get his accounts audited 34[***], it shall be sufficient compliance with the provisions of this section if such person gets the accounts of such business or profession audited under such law before the specified date and 35[furnishes by] that date the report of the audit as required under such other law and a further report 36[by an accountant] in the form prescribed under this section"
"Provided further that] in a case where such person is required by or under any other law to get his accounts audited 34[***], it shall be sufficient compliance with the provisions of this section if such person gets the accounts of such business or profession audited under such law before the specified date and 35[furnishes by] that date the report of the audit as required under such other law and a further report 36[by an accountant] in the form prescribed under this section"
10 September 2014
firstky 34,35 n 36 are those given as bookmark
secondly it is referring to audit if any already done under any other law like co act or under any other act then no need to do audit u/s 44AB
secondly it is referring to audit if any already done under any other law like co act or under any other act then no need to do audit u/s 44AB
Suresh Yadav
(Querist)
10 September 2014
So the Statutory Audit of this company is enough ?
10 September 2014
yes if u read it after my prev reply then u will understand
Suresh Yadav
(Querist)
10 September 2014
And if Assessee is Partnership Firm
Gross Turnover is 63 lakhs
& Net Profit(NPBT) is 27,000/- (0.42%)
As Net Profit is Below 8% in this case
is Tax Audit Compulsory ?
Gross Turnover is 63 lakhs
& Net Profit(NPBT) is 27,000/- (0.42%)
As Net Profit is Below 8% in this case
is Tax Audit Compulsory ?
10 September 2014
then tax audit is necessary since there is gross turnover +ve and profit is below 85 hence sec 44 ad is applicable
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