Tax audit for partnership firm

This query is : Resolved

Parth Jain (Querist)
Follow

08 October 2013 Is it complusory for a firm to go for tax audit if its turnover is less than 1cr and profit less than 8% of turnover even if its willing to show its profit at 8%.?

Dintakurthi Tirumala

Dintakurthi Tirumala (Expert)
Follow

08 October 2013 If it willing to show profit 8% u/s 44AD event their book profit is low for tax purpose then no need to make tax audit u/s 44AB.

Note: However for partnership forms 8% minimum profit shall be consider before payment of partner's remuneration.

OM SAI SRI SAI JAI JAI SAI

Dintakurthi Tirumala

Dintakurthi Tirumala (Expert)
Follow

08 October 2013 Means from the minimum profit as per section 44AD remuneration to the partners if any is allowable.

OM SAI SRI SAI JAI JAI SAI

Upgrade to CAclubindia Pro. Subscribe Now!

CA UMESH DULAL

CA UMESH DULAL (Expert)
Follow

08 October 2013 If you wise to declare profit at 8 % or more you need not get tax audit if turnover is less than 1 cr
Remember you can take benefit of parter salary from declare profit if it is allowed by partnership deed