44ad
This query is : Resolved
30 July 2011
Partnership firm has gross receipts of 700000 and has a net loss of 100000. it has no other income.will tax audit be compulsory or not.?
30 July 2011
Tax audit complusory only if
1.Business Gross turnover above 60 lakhs
2.In professinal case above 15 lakhs
3.if assesse falls u/s 44AD or 44AE and
claims less than minimum presumptive income like 8 % in 44AD.
1.Business Gross turnover above 60 lakhs
2.In professinal case above 15 lakhs
3.if assesse falls u/s 44AD or 44AE and
claims less than minimum presumptive income like 8 % in 44AD.
31 July 2011
In my view, as per Section 44AD(5) your firm would not require to get its account audited provided the net loss of Rs 100000 is- before providing partners interest and remuneration.
Message likes :
1 times
31 July 2011
I do not agree with Mr. Bafna. As the section provides minimum profit @8%. In your case if the loss is after providing Interest and Salary to partner and the profit before providing is 8% of Gross turnover then it is out of tax audit otherwise you have to get the accounts audited.
31 July 2011
The provision of section 44AD(5) can be interpreted in the following manner-
I request the expert to suggest a better interpretation to help us all-
PART A.
5) " Notwithstanding anything contained in the foregoing provisions of this section, "
FORGET ALL WHICH HAVE BEEN SAID IN THIS SECTION IN THE PROVISIONS OF SS1 TO SS4 OF
THIS SECTION.
PART B
an eligible assessee who claims that his profits and gains from the eligible business as lower than the profits and gains specified in sub-section (1) and
.
IT IS TALKING ABOUT PROFITS LESSER THAN 8%.
IT MEANS PROFIT LESS THAN 8% WILL BE CONSIDERED FOR TAXATION PURPOSE
.
PART C
whose total income exceeds the maximum amount which is not chargeable to income-tax,
AND TAXABLE INCOME IS REQUIRED
PART D
shall be required to keep and maintain such books of account and other documents as required under sub-section (2) of section 44AA and get them audited and furnish a report of such audit as required under section.
SUCH PERSONS ARE REQUIRED TO GET THEIR BOOKS OF ACCOUNT AUDITED.
IT CAN BE INTERPRETED THAT IN CASES WHERE TOTAL INCOME IS BELOW THE TAXABLE LIMIT, THERE IS NO REQUIREMENT OF AUDIT, EVEN IF THE PROFIT SHOWN IS LESS THAN THE REQUIRED 8% (OF TURNOVER OR GROSS RECEIPTS).
I request the expert to suggest a better interpretation to help us all-
PART A.
5) " Notwithstanding anything contained in the foregoing provisions of this section, "
FORGET ALL WHICH HAVE BEEN SAID IN THIS SECTION IN THE PROVISIONS OF SS1 TO SS4 OF
THIS SECTION.
PART B
an eligible assessee who claims that his profits and gains from the eligible business as lower than the profits and gains specified in sub-section (1) and
.
IT IS TALKING ABOUT PROFITS LESSER THAN 8%.
IT MEANS PROFIT LESS THAN 8% WILL BE CONSIDERED FOR TAXATION PURPOSE
.
PART C
whose total income exceeds the maximum amount which is not chargeable to income-tax,
AND TAXABLE INCOME IS REQUIRED
PART D
shall be required to keep and maintain such books of account and other documents as required under sub-section (2) of section 44AA and get them audited and furnish a report of such audit as required under section.
SUCH PERSONS ARE REQUIRED TO GET THEIR BOOKS OF ACCOUNT AUDITED.
IT CAN BE INTERPRETED THAT IN CASES WHERE TOTAL INCOME IS BELOW THE TAXABLE LIMIT, THERE IS NO REQUIREMENT OF AUDIT, EVEN IF THE PROFIT SHOWN IS LESS THAN THE REQUIRED 8% (OF TURNOVER OR GROSS RECEIPTS).
Message likes :
1 times
01 August 2011
I Agree with the opinion of Mr. bafna. Thanks sir for ur advice.
01 August 2011
Thankyou Mr. Bafna for such a nice interpretation.
its very clear from your interpretation that if assesse claims less than 8% profit he needs to get its account audited only if his Taxable income is above exemption limit.
Thanks.
its very clear from your interpretation that if assesse claims less than 8% profit he needs to get its account audited only if his Taxable income is above exemption limit.
Thanks.
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- Is this income indian or foreign income?
- ITC temporary reversal and reclaim
- GST on export of services and Input Credit
- RCM applicability on Rent Paid by Registered Person to Unregistered Landlord for Residental Building
- Inventory of finished goods
- Applicable TDS rate for sale of property in Nov 2024
- Quiery in relation to GST liability in case of an advocate who has obtained GST registration.
- Should I report my US salary for January, February, March in Schedule FA?
- GST ON EXPORT COMMISSION
- Sale of property furniture sale
- BUYING PROPERTY COULD NOT FILE 26QB
- Gst input for FY 23-24
- Regarding Waiver of Interest levied u/s 50 of PGST/CGST Act
- LAST YEAR 2022-23 ITC IN NEXT YEAR 2023-24 REPORITNG IN GSTR-9
- MIS MATCH OF INVOICE NUMBER
- IGST Credit-Show cause notice issued-confusion
- Issue of gst e invoice
- How to adjusted advances given or receipt
- Foreign vendor without PAN unable to to register due to non receipt of OTP on foreign number ?
- 133(6) DIN INVALID format error - ->WHERE TO REPLY 133(6) notice?
Trending Online Classes
CAclubindia
