Audit of a firm

This query is : Resolved 

15 November 2017 A Partnership firm engaged in the trading of Sanitary goods having Turnover Rs. 48.50 Lacs for the financial year 2016-2017.

Was the said firm liable for Tax Audit.

If yes, plz tell the way as they have not filed their ITR and Tax Audit before 7th Nov 2017.

Can they file their ITR U/S 44AD without Audit.

Firm is having Net Profit Rs. 4500/- . Partner's Remuneration Rs. 144000/- Interest on Capital Rs. 332802/- total of all is more than 8% of Turnover


15 November 2017 for filing return under 44AD, you need to show a profit after partners' interest, commission, salary, bonus etc.8% of turnover....try to find out the trade off between paying the tax on 8 % of 4850,000 versus tax audit fee + penalty for ate filing and take the decision

15 November 2017 Amol sir plz define in brief. What is he right way for the assesse.


15 November 2017 the one which involves lees amount of cash outlay is right way

15 November 2017 opting for 44AD....8% of 48,50,000/- = 388,000
tax on the same = 30% of 388,000 = 116,400/-
plus you need to pay interest for late filing, non payment of advance tax etc.
As against this, if you go by regular profit.... late filing of tax audit report 24250 + fee for tax audit (i am neither aware how much you pay for your tax audit nor i am interested in knowing)+ return filing fee (i am neither aware how much you pay nor interested in knowing) + tax 30% of 4500 (assuming partner's salary is fully allowable)
So to say you need to find out the pay off between two

15 November 2017 Thanks a lot Amol sir 4 u r advice .

15 November 2017 you are most welcome....



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