Mangesh Pisolkar (CEO) 23 September 2015
"""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)
shivaji prasad bhimavarapu (CHARTERED ACCOUNTANT) 24 September 2015
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
faisal (adffadf) 24 September 2015
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.
yashraj (article assistant) 25 August 2017
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 ??