Accounting for a new partnership

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We have just started a partnership firm, in the business of video production, in January 2016. We don't expect the turnover to exceed 10 lakh till march 31 2016. We don't have any experience in financial matters. We would like to know if need to keep any books of account and do we need to hire a CA to file our returns this year. Someone told us that we can claim a flat profit of 8% of turnover and don't need to keep any accounts. We tried to research but frankly the laws etc are too confusing for us.

We would be grateful if someone can help us in this regard. We understand that from next financial year, we would need to hire a CAa for proper accounting, but we are conerned about this year, which is only 3 months for us. And what care do we need to take while spending, as we just pay from our our own bank accounts for contractors etc and also from the firm account without taking any care.

Thanks for your help!

Replies (3)

Hello Mr. Mithun, 

The 8% rate of presumptive taxation that you are talking about is of course applicable to partnership firms, but only with respect to certain specified business. Your facts need to be observed to see if you can avail that benefit rate of 8%. Else, you will need to file returns based on the normal modes of computation. 

From your facts, you will need some professional help even for the 3 months for the filing of the ITR.  You may reach out to me at 9611856028 in case you are looking for CA services. 

Best regards, 

Aditi 

 

It is advicable to maintain record for every transaction. Do not make payment in cash to a party in a single day exceeding 20000. And if you are making payment to a contractor exceeding 30000 in a single payment or aggregate paymemt in a year exceeding 75000 you need to deduct tds @ 1 or 2% and remit such amount to the govt

Does that 30,000 is the final amount or exclulding tax? I would be paying Rs 28,000 (plus service tax) to someone. So the final amount would be above 30,000 but the actual amount for service is 28,000.


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