Sir,
In a partneship firm profit befor partner remuneration & interest on capital is more than 8% but after partner remuneration & interest profit is less but we are preparing proper profit & loss account in that case tax audit is applicable or not ( We are not showing 44ad income ) for AY 2017-18. Plz advice me urgently
Regards
Vipul
SIR I M PREPARING PROPER BOOKS & SHOW PROFIT 10% BEFORE REMUNERATION & INTEREST PAID THEN TAX AUDIT IS APPLICALE OR NOT
REMUNATION AND INTERESRT PAID AS PER DEED & AS PER ICOME TAX SLAB
what is the turnover??
TURNOVER IS 5518049/- GROSS PROFIT IS 474550/- , PARTNER SALARY IS 340000/- INTEREST IS 51600/- AFTER THAT NET PROFIT IS 82950/- . WE HAVE TO PREPARE COMPLETE PROFIT & LOSS ACCOUNT ( NOT 44AD INCOME), THEN AUDIT IS APPLICALE
No need for tax audit since the net profit before charging remuneration & interest paid to partners is equal or more than 8%.
question is asked for AY 2017-18
CAclubindia
