Is audit compulsory in case of firm having loss in a.y12-13

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Loveleen Sharma (Querist)
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24 July 2012 Is Tax Audit is applicable if partnership firm having loss in A.Y. 2012-13.??????Please Explain with reason.

CA Amit Jaiswal

CA Amit Jaiswal (Expert)
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24 July 2012 The criteria for Tax Audit u/s 44AB is the turnover during the Previous Year, not the Profit/Loss.

So, if your turnover is exceeding the prescribed limit, then audit will be required.

CA Hardik Bunha

CA Hardik Bunha (Expert)
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24 July 2012 no it is not mandatory.
as u/s 44ad,
if income is less than normal slab rate the rate 8% is not applicable.

CA Manikandan.A.V

CA Manikandan.A.V (Expert)
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24 July 2012 in case of non individual cases, tax audit is mandatory or you have to show atlease 8% of Turn over or gross receipts u/s. 44AD. so for loss cases tax audit become compulsory for this AY.

CA Dileep Surya Kumar

CA Dileep Surya Kumar (Expert)
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25 July 2012 Going with normal provisions of the act , Turnover is the criteria for audit u/s 44AB not the result.

However in case of presumptive taxation, audit will be required only when declaring income less than the amount/% as specified under respective sections. If for declaring less than the income as specified u/s 44AD, 44AE ,audit shall be applicable. If firm following presumptive taxation, audit will become applicable as the firm declaring loss.

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