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
T.T.VIJAYAPRAKASH (properter) (253 Points)
06 September 2019M/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
pooja
(taxpracticing)
(269 Points)
Replied 06 September 2019
Sarath Rajendran
(Nil)
(2791 Points)
Replied 07 September 2019
In your case tax audit is not applicable
CA. Atul Pithadia
(Chartered Accountant)
(60 Points)
Replied 07 September 2019
Why not applicable kindly explain?
T.T.VIJAYAPRAKASH
(properter)
(253 Points)
Replied 09 September 2019
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
CA. Atul Pithadia
(Chartered Accountant)
(60 Points)
Replied 10 September 2019
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.
Shorya
(CA Article)
(105 Points)
Replied 11 September 2019
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.
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