IF LLP Showing Profit 5.5% or Showing Loss from sale of service business of 44 lac rs. in such case Tax audit required or not?
Dhirajlal Rambhia
(SEO Sai Gr. Hosp.)
(160327 Points)
Replied 01 October 2019
The designated partners of the LLP are under a liability to prepare a statement of account and solvency, which inter-alia have to report it to the Registrar of Companies in Form No.8. In general, an LLP is not required to get its financial statement audited, however, if the turnover of the LLP exceeds Rs.40 Lakhs or the capital of LLP is more than Rs.25 Lakhs then as per Section 34(4) of the Act, the accounts of the LLP shall be audited by a Chartered Accountant in practice who has been formally appointed to be auditor of the LLP.
The meaning of turnover for the purpose of a tax audit is an aggregate of the gross value of the realization made from the sales, supply or distribution of the goods or on account of services rendered or both during the financial year.
Though as per sec. 44AB of IT act, tax audit will not be liable in this case.
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