Partnership firm
This query is : Resolved
lalit sharma
(Querist)
10 March 2016
sir,
if i declare profit of a partnership firm less than 8 % (not opting 44AD) . is it mandatory to audit of accounts in such situation as rate of taxation on profit is 30% flat rate & even a single ruppee is taxable for firms.
if i declare profit of a partnership firm less than 8 % (not opting 44AD) . is it mandatory to audit of accounts in such situation as rate of taxation on profit is 30% flat rate & even a single ruppee is taxable for firms.
Ankur Singhal
(Expert)
10 March 2016
Dear
As per section 44ad minimum profit to be declared is 8% but in case of firm you are entitled to get deduction of partner salary and interest from the 8% profit.
In case if you want to show profit below the above then its Mandatory to get the accounts audited by a CA.
As per section 44ad minimum profit to be declared is 8% but in case of firm you are entitled to get deduction of partner salary and interest from the 8% profit.
In case if you want to show profit below the above then its Mandatory to get the accounts audited by a CA.
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Meena Rajesh Jalan
(Expert)
11 March 2016
Audit under section 44AD is applicable if you opt for it. If you not opt for it and naturally turnover is less than tax audit threshold, it is not mandatory to get the accounts audited by a CA.
Ankur Singhal
(Expert)
11 March 2016
Dear
Expert, the query relates to that the person want to show profit below 8% of turnover . the turnover is below 1cr. Now to show profit below 8% audit is mandatory.
Pls refer section 44ad and 44ab for more clarity .
Expert, the query relates to that the person want to show profit below 8% of turnover . the turnover is below 1cr. Now to show profit below 8% audit is mandatory.
Pls refer section 44ad and 44ab for more clarity .
Meena Rajesh Jalan
(Expert)
12 March 2016
Dear Ankur please once again go through section 44AD . It is clearly mentioned there that this scheme is optional. If the assessee opt for it and then show profit less than 8% then only audit under section 44AB is applicable.
Ankur Singhal
(Expert)
12 March 2016
Dear expert
Pls refer the query asked.
I too replied the same.
Pls read all the queries carefully before answering.
Pls refer the query asked.
I too replied the same.
Pls read all the queries carefully before answering.
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