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44ab audit
in case of loss to firm declaring less than 8% profit having turnover 56lakh ,is it require for audit??
Replies (12)
in case of loss, audit is not required
Can you explain Your query again...
firm having a turnover 56 lakh and net loss 2 lakh .. department send a notice to firm containg firm claiming less than 8% profit require for audit on the other hand firm claiming that firm is in loss ..does audit require~~
for which assessment year and what is the type of business
Once again Your query is not cleared...
Are you filed Your ITR?
if Yes...
Which ITR and Which section?
Are file loss return or Less than 8 percentage and profit...?
What is in The AO notice...?
Are you filed Your ITR?
if Yes...
Which ITR and Which section?
Are file loss return or Less than 8 percentage and profit...?
What is in The AO notice...?
obviously firm is compulsory require to file return and it is trading business
Hello, I know...
Ask Your Query clearly then You can get exact solution from CCI Members...
Without clarity no way for correct reply
Ask Your Query clearly then You can get exact solution from CCI Members...
Without clarity no way for correct reply
sorry bt what is doubt regarding query
| Originally posted by : Bharti Makhecha | ||
 |
in case of loss to firm declaring less than 8% profit having turnover 56lakh ,is it require for audit?? |  |
In case Loss - It's mean Loss of Firm like More Expenses like 56 lakhs T/O But, Purchase and Expenses is Rs. 58lakhs then It's fall under Loss Rs. 2 lakhs...
Less than 8% profit - means Your firm is under Profit but its less than 8% like T/O 56 lakhs but profit less than 8% as Less than Rs. 448,000 (means from Rs. 1 to Rs. 447,999)
exactly for say turnover is 56 lakh nd expenses is 58 lakh than loss arise is 2 lakh .firm view is :in case of loss no audit requirement cz there is no profit
bt department view is that 2 lakh is less than 8% so firm have to audit it's account
bt department view is that 2 lakh is less than 8% so firm have to audit it's account
Finally You come in the Base of Query....
Hence If form is loss then no audit requirements and ITR will be file u/s 44AA...
Even if Firm will file u/s 44ad then Dept will ask 8 percent profit... In case profit is less than 8 percent u/s 44ad then Tax Audit is applicable...
Hence If form is loss then no audit requirements and ITR will be file u/s 44AA...
Even if Firm will file u/s 44ad then Dept will ask 8 percent profit... In case profit is less than 8 percent u/s 44ad then Tax Audit is applicable...
As per sec 44ad, if your income is chargeable to tax then you have to carried out audit so incase of loss, there is no requirement of audit.
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