RAJ KUMAR (FINANCE MANAGER) (1393 Points)
13 December 2011HELLO FRIENDS, PLS. TELL ME IF A PARTNERSHIP FIRM SUFFERS A LOSS IN THE PREVIOUS YEAR.
IS IT REQUIRED TO AUDIT OR NOT.
BECAUSE SEC 44AD STATES THAT IF PROFIT IS LESS THAN 8% IT IS REQUIRED TO BE AUDIT.
WHAT IN THE CASE OF THE LOSS.
PLS. HELP ME.
THANKS.
Giridhar S Karandikar
(Team Lead)
(7543 Points)
Replied 13 December 2011
As profit is less than 8% because the firm has incurred a loss audit will be required.
CA Ketan Waghela
(Partner at Elite Educare)
(356 Points)
Replied 13 December 2011
44 AD (Presumptive taxation) states that if assessee claims that the profits & gains from the business are lower than (i.e less than 8%) the profits & gains in accordance with the pro. of 44AD & if income exceeds the maximum amount not chargeable to tax, audit is mendatory even in case of loss.
In your case if the T/O exceeds 60 Lacs and profit is less than 8% it is liable for audit.
CHOTAI DHARMESH
(ARTICLE)
(38 Points)
Replied 03 January 2012
for, further clarification plese refer the blog...
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LIVE Form 10 B and Form 10BB: Handle Tax Audit Reports of Charitable Organizations(without recording)
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