05 August 2014
Please note that audit is not compulsory for firms.
The audit is triggered only where the turnover exceeds the prescribed limits (for eg a CA firm, being a professional firm, shall be liable for tax audit if turnover crosses Rs 25 lakhs. Whereas a manufacturing partnership firm shall be liable for tax audit if the turnover crosses Rs 100 lakhs). Further where the firm is covered under 44AD but the profit is less than 8% of the turnover, tax audit shall apply.
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