11 March 2009
A partnership firm carrying business of coaching classes consisting of 4 partners. Their qualification is as under 1 Dr 2 Dr 3 MSc 4 Msc Whether this firm will be professional firm n liable for audit if gross receipts exceeds rs 10,00,000/- The firm also employ staff to provide coaching to students.
The another partnership with all above characheristic but there are only 2 partners 1 MS, BE 2 B sc now what will happen for the purpose of audit?
11 March 2009
In both the cases the assessee firm will be cosidered as conducting business and not profession. Pl refer page 24 of ICAI publication (2000 edition) 'Issues on Tax Audit'. Hence if the gross receipts does not exceed Rs.40,00,000/- per annum provisions of section 44AB of The income tax Act,1961 does not apply.
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