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44ab - partnership firm

S ELAVARASI (ACCOUNTANT) (2975 Points)

26 October 2017

Dear Sir / Madam.,

A partnership firm (2 members) run a Engineering Firm with Service works... They are filed the firm Account previous FY like 2013-14, 2014-15 and 2015-16 U/s 44AA and Without Audit. Also they get Remuneration and Interest after the profit...

Their T/O around 40 lakhs in FY 2016-17... Also they have all accounts based on Sec 44AA.

Query is:

1. Can we file the same way in FY 2016-17...?

2. In this case Tax Audit Applicable or Not...?

3. How to file without Tax Audit...?

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8 Replies

Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (168971 Points)
Replied 26 October 2017

1. Yes........ or even offer the income assessment u/s. 44AD.

2. In either case tax audit is not required if profit margin is 6/8 % or more........

3. File u/s. 139(4).....

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S ELAVARASI (ACCOUNTANT) (2975 Points)
Replied 26 October 2017

Thank you Sir.,

In the AY 2017-18 Tax Audit is appilicable to Partnership Firm..

so above said view by your reply..

3. File u/s 139 (4)....

If I file the section then tax audit not required...???

If yes.. Please give the solutions or Explain...

Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (168971 Points)
Replied 26 October 2017

I think there is mis-understanding, I repeat:

In either case tax audit is not required if profit margin is 6/8 % or more........

When tax audit is not applicable........ then you cannot file it within due date.... which was 5th August, 2017

If you wish to go for Tax audit.......... you can file u/s. 139(1) upto 31.10.2017.....

First you decide....... what is the profit margin you have......

S ELAVARASI (ACCOUNTANT) (2975 Points)
Replied 26 October 2017

SIr.,

Last FY (2015-16) T/O - Rs. 46,21,870 /-

Profit Before remuneration - Rs. 4,99,071/-

Less remuneration - Rs. 3,89,450 /-

Profit - Rs. 1,09,630 / -

Tax Payments Rs. 33876 (TDS- Rs.33040 + Cash - Rs. 990 withInterests)

S ELAVARASI (ACCOUNTANT) (2975 Points)
Replied 26 October 2017

Now FY 2016-17 .Rs. 43 lakhs...

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Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (168971 Points)
Replied 26 October 2017

Assuming total turnover through bank......... 43 lakhs * 6% profit = 2.60 lakhs.

So, in case the client is ready to declare minimum 2.60 lakhs profit.... and also ready to pay tax about Rs. 80,000/-......... Tax audit will not be applicable......... Otherwise file normally u/s. 44AB with tax audit report.

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