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

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CEO
25 Points Joined July 2009

"""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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On 23 September 2015 at 23:38 Report
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CHARTERED ACCOUNTANT
2391 Points Joined March 2012

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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On 24 September 2015 at 08:00
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CA
600 Points Joined December 2008

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

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On 24 September 2015 at 11:17
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CEO
25 Points Joined July 2009

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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On 24 September 2015 at 11:21
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CA
600 Points Joined December 2008

Right Mr. Mangesh!!

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On 24 September 2015 at 11:27
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adffadf
23 Points Joined January 2013
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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On 24 September 2015 at 20:28
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Partner V Mittal & Co
252 Points Joined April 2012
Nor eligible for tax audit.
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On 24 September 2015 at 23:37
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Others
23 Points Joined August 2015

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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On 08 July 2017 at 22:27
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Practicing CA
87 Points Joined February 2010
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 ??
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On 25 August 2017 at 02:58
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Practising Chartered Accountant
26 Points Joined September 2012

Not Required

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On 12 September 2017 at 11:57
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articls
51 Points Joined November 2012

*Please note: Presumptive Income under Section 44AD and Section 44ADA is applicable only to Resident individual, HUF and Partnership firm (Excluding LLP).

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On 20 March 2018 at 11:40
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articls
51 Points Joined November 2012

Private Limited Company/Public Limited Company: Mandatory irrespective of Turnover, Profit, etc. Even in company is incurring loss; statutory audit is required to be conduct

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On 20 March 2018 at 11:42


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