Go Ad-Free on CAclubindia with Daily Mobile Updates. Subscribe Now!

Audit on partnership firm

Sharmaji (Student) (5 Points)

06 September 2021

I have a registered a partnership firm in 2020 and received a grant of 3 lakh in 2020 from university for a project. Now I have spent all the money. Do I forced to do a firm audit. Till date no GST number taken, no sales, no cash deposit. Only the grant money spent on project paid through online and cash voucher. So do I have to get a audit on partnership firm is it complusry ? I wish to close the partnership firm now.

Reply
Follow
Share

5 Replies

Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (180013 Points)
Replied 06 September 2021

Did you obtained PAN of the firm?

Upgrade to CAclubindia Pro. Subscribe Now!

rpaudit 7 (2 Points)
Replied 06 September 2021

No needed audit . file 44AD

CA. Sourav Sarkar (Chartered Accountant ) (24583 Points)
Replied 06 September 2021

Audit is not required

Sharmaji (Student) (5 Points)
Replied 06 September 2021

Yes I do have a company PAN for partnership firm but never used it or shared it

debora M (BUSINESS DEVELOPMENT MANAGER) (1697 Points)
Replied 07 September 2021

As per the Income Tax Act, 1961, Tax Audit of partnership firm is mandatory if the turnover/ gross receipt exceeds Rupees One Crore in case of business and Rupees twenty five laces in case of profession. ... A written report should be submitted by Auditor at the end.