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Pvt ltd company - is tax audit necessary if tuurnover <1.00c


Mangesh Pisolkar (CEO)     23 September 2015

Mangesh Pisolkar
CEO 
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"""Pvt Ltd company - Is tax audit necessary if Turnover <1.00Cr but Net Profit less than 8 %"" 
 

Ref Section 44AB / AD. about Tax audit necessary in case  turnover is less than 1.00 crore but the net profit is less than 8 % of turnover.  It applies to Inidividual / proprietorship / partnerships    and firms. 

Question 1 : Is the section 44 applicable to private limited company. ? 

Question 2: Is there any other section  which makes it mandatory for pvt. ltd company  to undertake Tax audit  IF  

A>  turnover is less than 1.00 crore  AND / BUT
B>  the nett profit is less than 8 %    (or any other lesser percentage) 

 

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shivaji prasad bhimavarapu (CHARTERED ACCOUNTANT)     24 September 2015

shivaji prasad bhimavarapu
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for a pvt company sec 44 AD deemed profit is not applicable hence if turnover is below 1 cr. and net profit is below 8% of turnover , do not consider deeming provisions u/s 44 AD. File ITR as per books of accounts of the company

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CA-AK (CA)     24 September 2015

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CA 
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Tax audit under section 44AD is applicable on companies if turnover exceeds 1 crores in relevant financial year.

Mangesh Pisolkar (CEO)     24 September 2015

Mangesh Pisolkar
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Thank you for your reply. 

Means in this case (p ltd company, Turnover less than one crore, profit  1 % to 2 %) 

"TAX AUDIT"  is not required. -- am I right ? 

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CA-AK (CA)     24 September 2015

CA-AK
CA 
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Right Mr. Mangesh!!

faisal (adffadf)     24 September 2015

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First of All Section 44AD of income tax act is not applicable on companies. Companies are required to gets the books of accounts audited compulsory for under the applicable provisions Of COMPANIES ACT 2013. Section 44AB (tax audit abv rs.1cr etc..) of IT ACT not section 44 AD(8% presumptive income) of IT ACT applies to companies based on the turnover.

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RAHULSMITTAL (Partner, V Mittal & Co)     24 September 2015

RAHULSMITTAL
Partner V Mittal & Co 
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Nor eligible for tax audit.

zaheeruddin (Others)     08 July 2017

zaheeruddin
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if pvt ltd company 5 lakhs  turn over need to appoint auditor,

registering under pvt ltds company can do any business and also has to get tin no

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yashraj (article assistant)     25 August 2017

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What in case of LLP whose turnover is 30 lacs and profit is 150000 (less than 8%) ? Is tax audit mandatory ? Because statutory audit is not compulsory in LLP till turnover reaches 40 lacs ??

sanjay badala (Practising Chartered Accountant)     12 September 2017

sanjay badala
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