if one of my client partnership firm pay tax on income (calculated @ 8% on tournover) as per sec 44AD after applying partners remmuneration, as per books actually there is less profit , on which tax is payable, but to avoid audit burden they choose for sec 44AD, AS it is continuing firm from last ten years, how balances are carrie forward to next year in books of accounts, i mean is it necessary to adjust books to show profit @ 8% on tournover, as per books there is no such higher profit, how capital accounts and other opening balances are carryforward to next year.
As per sec 44AD, it is not necessary to maintain books of accounts for particular year, but in next year how opening balances of partner's capitals and other balances are appear in books of accounts
CAclubindia
