Audit for partnership firm

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vipul khanna (Querist)
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04 July 2018 Dear Sir, One of our client is a partnership firm having gross receipts from training center of Rs 850000/- for the financial year 2017-18. Net profit before partner remuneration & interest on capital is 89653/-, partner remuneration is 70000 and interest on capital is 16340/- after that profit is 3313/- in that case audit is applicable or not, plz suggest
urgently.

CA Ankit R Momaya

CA Ankit R Momaya (Expert)
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04 July 2018 Audit is Applicable. 8% u/s 44AD is computed after Interest and Remuneration us/ 40(b).

vipul khanna

vipul khanna (Querist)
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04 July 2018 BUT WE ARE NOT SHOWING THIS U/S 44 AD WE MAINTAIN PROPER P & L AND ALSO FILL THE SAME IN INCOME TAX RETURN

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CA Ankit R Momaya

CA Ankit R Momaya (Expert)
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04 July 2018 Audit is Applicable if you are declaring profits less than 8% of Turnover.

vipul khanna

vipul khanna (Querist)
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07 July 2018 SIR IN THE ABOVE CASE WE ARE SHOWING PROFIT AT 10.50% AND AFTER THAT WE ARE PAYING REMUNERATION & INTEREST TO PARTNER AND PREPARING COMPLETE BOOKS OF ACCOUNTS THEN

CA Ankit R Momaya

CA Ankit R Momaya (Expert)
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07 July 2018 Dear Vipul,
The profit of firm after Interest and Remuneration must be 8%