28 November 2017
Dear Experts, Partnership firm having turnover of rs 51 lacs in Fy 16-17-Ay-17-18, after interest and salary and other allowable expenses profit is zero.Is it compulsory to have a tax audit? or i simply file ITR-5 with disclose P&L, and BS. Because section 44ad applicablity from ay 17-18 not allowed partnership firm to deduct interst and salary expenditure and in that case income tax as tentative calculated will go more then 1 lacs.
28 November 2017
Yes, you have to get your accounts audited as Interest and Remuneration is no more allowable from 8% declared profit. I would like to also inform that belated date of filing of ITR for AY 2017-18 is 31/03/2018. So, hurry up and kindly do compliance.
28 November 2017
let me put sum figures before you so that we can reach to final conclusion. Total turnover is Rs 51 lacs, from which gross receipt through bank 46 lacs(minimum 6% profit is Rs276000) and cash sales 5 lacs(minimum 8% is Rs 40000). Interest paid to partner is Rs 224922 and Salary to partner is 119610. Total of int and salary is 344532. and suppose minimumprofit is rs 276000+rs40000 which is 316000, then in this case profit before deduction of int and salary is more then as required.
29 November 2017
If you can show a profit of 3.16 lacs (as per your calculation) as taxable income u/s 44 AD & pay tax on it, then you need not do tax audit u/s 44 AB, other wise you have to do tax Audit.
CAclubindia
