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Tax Audit

palak vaid (18 Points)

21 September 2017

If my pvt Ltd company's turnover is 95 lacs and profit is less than 8%. Do I need to need to get the accounts audited?

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(Guest)

less than 8% need to get accounts audited

palak vaid (18 Points)
Replied 22 September 2017

But section 44AD isn't applicable to companies.. So 8% clause will not arise as per my views

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Luvish Jain (Tax Consultant) (507 Points)
Replied 22 September 2017

dear palak, companies are requored to be audited under companies act 2013, and under income tax in your present scenario no tax audit is reqd. but still while filing itr audit under companies act must be filled up.

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RAJA P M ("Do the Right Thing...!!!") (127072 Points)
Replied 22 September 2017

@ Palak.,
Your Accounts ll be required audit...

Prathik Lenin (Chartered Accountant) (60 Points)
Replied 22 September 2017

I presume that your query is with regard to audit under Income Tax act. Since you have not mentioned your type of business I am considering it does fall in any special category, further, you have not opted to pay tax on presumptive basis (section 44AD, 44AE, 44BB, 44BBB etc)

44 AB covers tax audit cases. The section provides that a person is required to get his books of account audited if in the previous year;

He is carrying on business provided the turnover exceeds Rs 1,00,00,000/-;
He is carrying on profession provided the gross receipts exceed Rs 25,00,000/-;
He is covered under presumptive taxation (section 44AE, 44BB,44BBB, 44AD)

Therefore, in your case no audit is applicable under the income tax act.

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