Tax audit

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

15 August 2013 one of my client firm is working as a proprietorship for 6 months and later it is working as partnership firm.
in first half turnover is about 60 lacs and in later 6 months turnover is 75 lacs.
the name of firm is exactly remains same, afterwords also.
can tax audit applicable to them.

CA Rinkal

CA Rinkal (Expert)
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15 August 2013 No,

your client will not liable to audit as his individual turnover is 60 lk and his partnership firm's turnover is is 75 lk.

it is to inform you that under income tax act both will consider as separate assessee.

so the turnover limit will consider separately for individual and partnership.

if you shown profit lower than 8 % then u have to audit your client's books of account