Hello,
A LLP has a turnover of Rs.12 lacs in the Financial Year 13-14(AY 14-15). It has made a profit of around Rs.120000 which is 10% of Sales. Now, the LLP wants to pay interest and remuneration to its partners to the extent of Rs.48000 which means the Net Profit after Partner's Remuneration/Interest is only Rs.72000.
Now, my question is whether LLP is mandatorily required to show a profit in excess of 8% to avoid Tax Audit? If yes, will Tax Audit be applicable in the above given case given that though the profit is 10% of Net Profit, after providing for Partner's Remuneration and Interest it is only 6%
CAclubindia
