Filing Of IT Returns of a Partnership Company

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Mohan

Director

36 Points Joined July 2009

Hi,

We have a partnership company and I have a few queries for the same

1. The company was incorporated during FY 2005 sometime in February 2005 and has been Registered

2. We are in the business of selling retail Flowers, my question is are we exempted from Income Tax, which I presume we are not since not ALL our sales are self grown only about 30% is grown in our farm, the rest we get it from all over India.

3. We have not filed any IT returns for the last 4 years. I want to file the returns for the First year i.e Accounting Year 2005-06 with a total turnover of about 33 Lakhs. I presume we dont come under the 44EB compulsary tax audit.

4. Can you please advice what are the penalites and implications for late filing

5. If we can file the same now, can we do it ourselves as all our books of accounts have been maintained in Tally. If so, what are the relavent forms.

Any help and advice would be greatly appreciated

Replies (3)

Anumanchipalli Sathikonda

Tax Consultant

1559 Points Joined June 2009

Mr Mohan

Please clarify the whether your business concer is a partnership firm registered under partnership act, 1932 or a company incorated under companies act, 1956.

It is sectin 44AB not sectin 44EB as cited by you.

Please post your querry explaining all details, the nature of the income you earn? Modus operadi of the business of your business concern etc.

Best Wishes

Sathikonda

Mohan

Director

36 Points Joined July 2009

Dear Mr.Sathikonda,

This particualr entity is a "Partnership" firm. I'am sorry about the error since I dont know particulary, but all I know is if the turnover is above 40 Lakhs, then it comes under Tax Audit.

We buy and sell flowers with a retail outlet in Bangalore. Our suppliers are mainly from TN & kerala. A portion of the turnover (30%) is completly grown by us in our farm. The rest is brought and sold.

We have no other registrations since we dont fall under taxable commodites under the KVAT or under service tax act. Our turn over for the first year i.e FY 2005-06 is about 33 Lakhs. I have prepared all the books of accounts in Tally and arrived at a P&L statement. All payments are made and received strictly through cheques only. Hence it is very straight forward.

But since we have NOT filed the returns anytime before, I would be greatly obliged if you could guide me to the relavent forms and procedures.

Rgds

Mohan

Anumanchipalli Sathikonda

Tax Consultant

1559 Points Joined June 2009

Mr. Mohan

The Turnover of 30% i.e. sale of flowers grown in your own farm is not business turnover. It is the result of agricultural operations. The rest of the turnover is business turnover.

Now you have to ascertain the turnover which is the result of agricultural operations on your own farm/land and seggregate the income from that turnover by matching the relevant expenses. The net result is the "Income from Agriculture"

If the rest of the turnover being a business turnover exceeds the limit laid down in section 44AB you have get your accounts audited as provided in the section.

I advise you to maintain seperate set of books of account for your agricultural operations and business operations.

Best Wishes

Sathikonda