Is audit applicable

As per section 44AB of the I-T act if the turnover of the fimr crosses  the 60lacs mark till F.Y. 2011-12 then the firm is liable to get it's account audited from a Chartered Accountant & file the retunr with the TAx Audit Report on or before 30.09.2012.

The accounts are requried to be maintained by the firm.  the following books of accounts are requried to be prepared:

Cash Book

Bank Book

Fixed Assets Register

Purchase REgister

Sales REgister

Journal Vouchers

Purchase Vouchers

I guess you can maintain your accounts in Tally.  You will be requried to take a Profession tax  number.  As you are liable for Audit in the F.Y.2011-12, you will be liable to make TDS for the paymetns to contractors, professionals from the current F.Y. i.e. 2012-13.  Also you will be required to file an quarterly TDS reutrn.

Please contact a C.A. having a office in your locality & he will advise you.