if a partnership firm having turnover less than 1cr shows profit 8% and after that distributes remuneration and interest to partners liable to audit as net profit after interest and remuneration
for eg turnover 6000000.00
prifit @ .08 480000.00
remuneration 378000.00
interest 100000.00
Net profit 2000.00
liable to audit or not
please help....
Agree with Raj.
But in you calculation, remuneration is calculated before interest is deducted from profit.
in my view,
Net Profit: 480000
Less: interest on capital 100000
Book profit: 380000
remuneration: 318000
taxable profit: 62000
Hii Sir,
It is clear, there is no tax audit required in this case.
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