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44ab audit

Bharti Makhecha (31 Points)

05 August 2018

in case of loss to firm declaring less than 8% profit having turnover 56lakh ,is it require for audit??

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12 Replies

Nitish Vats (4 Points)
Replied 05 August 2018

in case of loss, audit is not required

RAJA P M ("Do the Right Thing...!!!") (127362 Points)
Replied 05 August 2018

Can you explain Your query again...

Bharti Makhecha (31 Points)
Replied 05 August 2018

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~~

Nitish Vats (4 Points)
Replied 05 August 2018

for which assessment year and what is the type of business

RAJA P M ("Do the Right Thing...!!!") (127362 Points)
Replied 05 August 2018

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...?

Bharti Makhecha (31 Points)
Replied 05 August 2018

obviously firm is compulsory require to file return and it is trading business

RAJA P M ("Do the Right Thing...!!!") (127362 Points)
Replied 05 August 2018

Hello, I know...

Ask Your Query clearly then You can get exact solution from CCI Members...

Without clarity no way for correct reply

Bharti Makhecha (31 Points)
Replied 05 August 2018

sorry bt what is doubt regarding query

RAJA P M ("Do the Right Thing...!!!") (127362 Points)
Replied 05 August 2018

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)

Bharti Makhecha (31 Points)
Replied 05 August 2018

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

RAJA P M ("Do the Right Thing...!!!") (127362 Points)
Replied 05 August 2018

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...