Section 44 ab
This query is : Resolved
15 August 2013
Case 1 :-Im a proprietor having two businesses each having turnover of 50 lacs, total 100 lacs ,is Audit applicable to me ?
Case 2 :- Im a partnership firm as on 1-4-12 one partner died on 30-9-12 when turnover was 50 lacs. thereafter im proprietor turnover from 1-10-12 to 31-3-13 is 51 lacs, now total turnover of firm is 101 lacs , is audit applicable ?
Case 2 :- Im a partnership firm as on 1-4-12 one partner died on 30-9-12 when turnover was 50 lacs. thereafter im proprietor turnover from 1-10-12 to 31-3-13 is 51 lacs, now total turnover of firm is 101 lacs , is audit applicable ?
15 August 2013
In case 1:tax audit not applicable. Case 2: not applicable
15 August 2013
CASE 1: If aggregate turnover exceeds Rs. 1 crore then required to make tax audit.
CASE 2: Tax audit doesn't required as per section 44AD. Because of upto 30-9-2012 business is in the status of Partnership firm and income and liabilities upto such date is related to all the partners of the firm and from 1-10-2012 business is in the status of proprietorship firm. So there is two different status.
OM SAI SRI SAI JAI JAI SAI
CASE 2: Tax audit doesn't required as per section 44AD. Because of upto 30-9-2012 business is in the status of Partnership firm and income and liabilities upto such date is related to all the partners of the firm and from 1-10-2012 business is in the status of proprietorship firm. So there is two different status.
OM SAI SRI SAI JAI JAI SAI
15 August 2013
Thank u Mr Tirumala, now assuming in both the periods turnover is more than 100 lacs , do i issue 2 audit reports , that means both are separate audit irrespective of same sales tax number and parties have common ledger.
15 August 2013
1st case: Tax audit applies because of the following provisions:
ICAI through a Guidance Note clarified the following points:
Where a person is carrying on more than one businesses or more the one professions – the total turnover of all the businesses or professions shall be clubbed together and tax audit shall be liable to be conducted if the total turnover exceeds prescribed limits.
2nd case: Tax audit is NA as told by Mr.Dintakurti.
ICAI through a Guidance Note clarified the following points:
Where a person is carrying on more than one businesses or more the one professions – the total turnover of all the businesses or professions shall be clubbed together and tax audit shall be liable to be conducted if the total turnover exceeds prescribed limits.
2nd case: Tax audit is NA as told by Mr.Dintakurti.
15 August 2013
Assuming eventhough having same sales tax number at the sales tax department you changed the status from partnership firm to proprietorship firm.
In case if you not changed the status then sales tax may consider total turnover is related to the partnership firm only and based on the sales tax department's report Income tax officer also may object you to consider it for partnership firm's turnover and computes tax liability.
So eventhough you having same sales tax number you may not have any problem but if the status not changed then you may face some problems and explanations.
OM SAI SRI SAI JAI JAI SAI
In case if you not changed the status then sales tax may consider total turnover is related to the partnership firm only and based on the sales tax department's report Income tax officer also may object you to consider it for partnership firm's turnover and computes tax liability.
So eventhough you having same sales tax number you may not have any problem but if the status not changed then you may face some problems and explanations.
OM SAI SRI SAI JAI JAI SAI
15 August 2013
Experts , u r requested to reply that - If im partnership as on 1-4-12 , one partner died on 30-9-12 when the turnover was 101 lacs , thereafter im proprietor till 31-3-13 when turnover was 102 lacs total 203 lacs, do u issue 2 audit reports , irrespective of bank account same and creditors / debtors have same ledger
15 August 2013
Yes, you have to issue two audit reports because of there is two different status of assessees.
OM SAI SRI SAI JAI JAI SAI
OM SAI SRI SAI JAI JAI SAI
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