Audit

Others 595 views 6 replies

HELLO FRIENDS, MY CLIENT IS A PARTNERSHIP FIRM DURING THE PY 2011-12 THEY DECLARED A LOSS OF RS. 3,00,000.

PLS. TELL ME WHETHER AUDIT IS COMPULSORY BECAUSE THE PROFIT IS LESS THAN 8%.

PLS. HELP ME. 

THANKS.

Replies (6)

as loss its not covered under 44AD, but for compulsary tax audit u/s 44AB, the turnover should exceed 60L

 

get in touch with your auditor and express all points to him and enjoy the benefits of his knowledgebase.

Yes Audit is Compulsory as per Sec 44AB

TURNOVER IS ONLY 30 LAKHS BUT THERE IS A LOSS.

NOW PLS. TELL AUDIT IS APPLICABLE BEACAUSE PROFIT IS LESS THAN 8% OR NOT.

THANKS.

Is your Profit is 8% or more ? - In your case no.

Then Sec 44AB(d) will get attracted, and you should get your books of accounts audited.

Sec 44AB(d): carrying on the business shall, if the profits and gains from the business are deemed to be the profits and gains of such person under section 44AD and he has claimed such income to be lower than the profits and gains so deemed to be the profits and gains of his business and his income exceeds the maximum amount which is not chargeable to income-tax in any previous year,

BUT IN CASE OF PARTNERSHIP MAX EXEMPTED LIMIT IS NIL.

SO HIS INCOME IS LESS THAN NIL.

THEREFORE AUDIT IS NOT APPLICABLE.

PLS. TELL I AM WRITE OR NOT?

THANKS.

Dear Raj,

There is no exemption limit for Partnership Firms.

It dose not mean that exemtion limit is ZERO, and the loss is less than zero.


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