Taxability of Partnership firm
This query is : Resolved
Mehul Jain
(Querist)
18 August 2017
If a partnerahip firm have turnover less than 1 cr then is it complusory to pay tax u/s 44 AD ?
Ashiwini Ballodia
(Expert)
18 August 2017
No, if profit is shown above 6% or 8%
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Mehul Jain
(Querist)
18 August 2017
but that profit will be before rumuneration and interest to partners right ??
Mehul Jain
(Querist)
19 August 2017
Thanks Ashwini and Raja.
so if my
Turnover is 80 lacs
Book profit before deducting remuneration and interest is 8 lacs (which is above 8% of turnover)
taxliability will be
(8 lacs-remuneration to partner-interest to partner)*30%
And will tax audit be applicable in the above case ?
19 August 2017
No. If you ll be pay tax on 8% profitable. Then you can file it u/s 44AD presumptive taxation...
If you ll be show profit 8l*30%=240000 & 240000*3%=7200 also calculate interests. Then you dont want audit...
If you ll be show profit 8l*30%=240000 & 240000*3%=7200 also calculate interests. Then you dont want audit...
Ashiwini Ballodia
(Expert)
19 August 2017
8% profit is calculated after remuneration & interest to partner
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