Partnership firm

This query is : Resolved

lalit sharma (Querist)
Follow

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.

Ankur Singhal

Ankur Singhal (Expert)
Follow

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.

Message likes : 1 times

Meena Rajesh Jalan

Meena Rajesh Jalan (Expert)
Follow

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

Ankur Singhal (Expert)
Follow

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 .

Meena Rajesh Jalan

Meena Rajesh Jalan (Expert)
Follow

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

Ankur Singhal (Expert)
Follow

12 March 2016 Dear expert
Pls refer the query asked.
I too replied the same.
Pls read all the queries carefully before answering.

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now