LLP performing IT services business or profession for tax audit 44ab

This discussion explores whether an LLP providing IT services with a turnover of £95 Lakhs should be classified as a business or profession for tax audit purposes. While IT services are often considered a profession, the LLP structure and partner remuneration (salary and profit share) complicate the classification. The key takeaway is that regardless of classification, an LLP is not eligible for presumptive taxation under sections 44AD or 44ADA, meaning the tax audit threshold remains £10 Crore (assuming minimal cash transactions).