Query of audit clause

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This query is : Resolved

vaf (Querist)

06 November 2014 hello,
my client has a partnership firm and its business has in service sector and the firm receive only commission income.
this year his gross receipts is 6000000 and it shows net profit is 1260000(21%).
now plz tell me in what clause audit is condected of sec. 44AB

1. Clause 44AB(a)- Total sales/turnover/gross receipts in business exceeding Rs. 1 crore

2. Clause 44AB(b)- Gross receipts in profession exceeding Rs.25 lakhs

3. Clause 44AB(d )- Profits and gains lower than deemed profit u/s 44AD
its urgent

Nikhil Kaushik

Nikhil Kaushik (Expert)

06 November 2014 depending upon whether your your activities are covered as business/profession, you get covered under clause (a) or (b). being commission income, 44AD is not applicable to you.

if you are covered as business, audit wont apply as turnover is less than 1 cr.

vaf

vaf (Querist)

06 November 2014 plz tell me the ans, i m not satisfied from ur answer

Nikhil Kaushik

Nikhil Kaushik (Expert)

06 November 2014 then apply your brain and decide whether you are covered as a business or venture...

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