Audit of Account Books of a Partnership Firm

Dear Sir,

1.If your turnover is below 1 crore and you are showing profit more than 8% of turnover, then you need not get your accounts audited.

2. No, a firm can't take this plea. It can be taken by an individual or HUF.

3. An Individuals or an H.U.F. is not liable to deduct TDS where the individual or H.U.F. is carrying on a business/profession where accounts are not required to be audited u/s 44AB, in the immediately preceding financial year.

Please feel free to call/revert in case of any doubts

Thanks and Regards

Abhishek Dugar

CA CS B.Com

Hi,

1. When the Turnover of the Partnership Firm is below 2 Crores and decides to opt for Presumptive Taxation u/s 44AD (Provided it is not carrying on any business that is not eligible for 44AD Benefit)

2. No. A partnership has to deduct TDS on Rent paid

3. Individual need not deduct TDS u/s 194I on Rent paid if he is not liable to Tax Audit (Turnover less than Rs. 1 Crore if not opting for 44AD. Turnover less than Rs. 2 Crore if opting for 44AD). However, a new Section 194-IB is proposed to be introduced w.e.f 1-Jun-2017 wherein individuals / HUF not liable to Tax Audit have to deduct tax at 5% if the Rent paid exceeds Rs. 50,000 per month

Hello Sir,

1. The criteria for Audit has kept on changing since past 2 years so exactly which Financial Year are you talking about.

2. No, it is mandatory for a Partnership firm to apply for a TAN and deduct TDS.

3. In case of individual, it is mandatory unless he is liable for Tax Audit in the previous financial year.

Trust this clarifies your query.

Feel free to call / get back in case of further clarifications.

Thanking You.

Regards,

Rohit R Sharma

BCOM, ACA, LLB-GEN, CERT. FAFP

1. If the turnover of the firm (Business) is less than 2 Crores then there is no need to audit the Books. But the condition is the firm should declare minimum profit @8% of the total turnover. If they declare less than 8% then they need to get the books of accounts audited.

2. In case of partnership firm compulsory you need to deduct TDS even if your books are not audited.

3. In case of individual if the accounts are not required to be audited then there is no need to deduct TDS even if the rent exceeds Rs.180000 pa.

4. Need to mention that in Budget 2017 it is stated that if the person, individual is paying rent more than 50000 pm then he need to deduct TDS even if the books are not required to be audited.

If the turnover of the Institute is below the limits specified u/s 44AB (Or 44AD if opted for the same), then TDS on Rent is not applicable. If Tax Audit is applicable, then TDS is also applicable.

Dear Sir,

TDS is not deducted u/s 44AB. Section 44AB is for audit.

An Individuals or an H.U.F. is not liable to deduct TDS where the individual or H.U.F. is carrying on a business/profession where accounts are not required to be audited u/s 44AB, in the immediately preceding financial year.

Please feel free to call/ revert in case of any doubts

Thanks and Regards

Abhishek Dugar

CA CS B.Com

Sir need to check whether it is proprietory concern or society. It does not depend on name of the firm.

Hello Sir,

If the establishment is a proprietorship establishment, then TDS is not applicable unless you cross the threshold limit for Audit in the previous financial year.

Trust this clarifies your query.

Feel free to call / get back in case of further clarifications.

Thanking You.

Regards,

Rohit R Sharma

BCOM, ACA, LLB-GEN, CERT. FAFP