M/S A FIRM FOR FORU PARTNER. TOTAL SALES FOR THE FY 2018-19 RS. 60.00LAKTHE NET PROFIT IS 1.00.LAOKS. NOT CHARGED IN PARTNER SALARY IN PL A/C. ONLY PARTNER INTEREST CHARGED RS. 3.00 LAKKS.
AUDIT TO BE MUST?
THANKS TO ALL
Menu
Partner ship firm audit
Replies (7)
if you are paying taxes on presumtive income basis as 44ad , than profit is below 8% so ...in such case you have to audit your books of account .... otherwise your turnover is below RS 1 crore so you need not to do audit ....thank you sir
Tax Audit applicable.
In your case tax audit is not applicable
Why not applicable kindly explain?
DEAR SIR MR. ATUL PITHADIA
MY QUERY IS
TOTAL SALES RS. 60.00. LAKS (THE PARTNERSHIP FIRM)
PARTNER INTEREST RS. 3.00. LAKS
NET PROFIT RS. 1.00. LAKS
NO PARTNER SALARY IN P/L A/C
IF THE FIRM APPLICABLE U.S 44AD?
OR
CLAUSE 44AB (e) profits and gains lower than deemed profit u/s 44ad?
thanks to all
Since your profit is Rs. 1.00 lacs which is 1.66% of total sale of 60.00 lacs then Tax audit is mandatory beacuse as per Sec 44AD 6% or 8% profit need to be maintained after payment of Interest and remuneration to partner and not before.
The law clearly states that u/s 44AD, you will get books audited if you've claimed presumptive benefit in any previous year, and you don't continue to claim benefit under presumptive for further 5 AY's from the relevant i.e., say in AY 2017-18 you've taken 44AD, in any of the AY 2018-19,2019-20,2020-21,2021-22 you DO NOT continue with presumptive scheme, you maintain BOA & get it audited duly.
Recent Threads
- Can wife claim TCS refund
- Which ITR form to use for reporting of Outward For
- Filing of tax return online
- CREDIT NOTE REJECTED IN IMS SYSTEM
- HELP NEEDED ON FORM 26QB
- Pan card request for Self help group
- EFILING ITR2 FROM COMMON FILING UTILITY
- What is the role of a Pay Per Click company in dig
- If I paid advance to party for purchase in m
- Deduction of TDS certificate
CAclubindia
