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Partnership business taxation qwery

13 January 2019

Hello

I had started a partnership firm in month of September for business of transportation contractor

and till now i had only done one contract in which my receipt is only Rs.90000 and payer also deducted tds of 2%. amounting Rs1800

now I want to discontinue this firm and deciding to dissolve it

now my qwery is weather firm is required to tax audit and books maintenance ??

weather I had to file return of income tax for this firm??

I am not intrested in claiming back deducted tds

at nutshell, Now i dont want to do anything now, jo ho gaya wo ho gaya...chalega kya!!!!

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8 Replies

Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (160327 Points)
Replied 13 January 2019

You can file (& you have to) IT return under presumptive scheme. No more tax liability would arise, no need of audit, but IT filing mandatory.

PUSHP KUMAR SAHU (CA FINAL ASPIRANT) (3115 Points)
Replied 13 January 2019

AS PER PROVISO THIRD TO SECTION 139(1) FIRMS AND COMPANIES ARE REQUIRED TO FILE IT RETURN MANDATORILY....SECONDLY YOU ARE REQUIRED TO MAINTAIN BOOKS OF ACCOUNTS..AS YOU CANNOT OPT FOR PREASSUMPTIVE SCHEME UNDER SECTION 44AE...AS YOU ARE IN CONTRACTOR TYPE BUSINESS...AFTER FILING RETURN YOU CAN EASILY DISSLOVE THE FIRM...THERE IS NO REQUIREMENT FOR TAX AUDIT .....IT IS APPLICABLE FOR PERSONS AS SPECIFIED IN SECTION 2(31) WHOSE AGGREGATE T.O. IS MORE THAN 1 CRORE INR...

Sanjiv Rajpoot (3430 Points)
Replied 13 January 2019

i also agree with pashp kumar sahu sir because as per sec139(1) it is compulsory

Abhishek Agarwal (article) (55 Points)
Replied 13 January 2019

When 44AD presumptive taxiblity is not applicable then under what my firm will be taxable without audit And what will be amount of tax payable on this (approx) As this is business of transportation our all expenses are in cash due to labour intensive industry

PUSHP KUMAR SAHU (CA FINAL ASPIRANT) (3115 Points)
Replied 13 January 2019

what is your net profit after deducting all the expenses.

Abhishek Agarwal (article) (55 Points)
Replied 13 January 2019

Actually tho sir I am in loss but all my expenses are in cash

PUSHP KUMAR SAHU (CA FINAL ASPIRANT) (3115 Points)
Replied 13 January 2019

ALL YOUR CASH EXPENSES TO SINGLE PARTY TRANSACTION SHOULD BE LESS THAN 10000 INR...YOU CAN BIFURCATE THE EXPENSES INTO SMALL AMOUNTS LESS THAN 10000 IF YOU HAVE MADE CASH EXPENSES MORE THAN 10000.... BREAK THE TRANSACTION ...YOU CAN FILE THE RETURN..AND CLAIM THE TDS AMOUNT OF 1800....(REFUND)..

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Ruchika Somani (Coaching and Practice in Tax Audit Law.) (4429 Points)
Replied 14 January 2019

You can file return u/s 44AD and since all expenses are in cash so show profit of 8% of 90,000 i.e 7,200 to save yourself from tax audit compliance and pay tax of 30% on profit i.e 2,229 + penalty 10000 - 1800 (TDS) = 10,429/-