|QUERY:||ABC partnership firm is engaged in retail business. It sale for F.Y. 2016-17 is Rs. 40/- lakhs. Net profit, before remuneration to partners, but after interest to partners is Rs. 1,40,000/-. The firm gives remuneration Rs. 1,50,000/- to partners and thus, there is a net loss of Rs. 10,000/- In this situation, are books of account of firm liable to Audit under section 44AD r.w.s 44AB?|
|ANSWER:||Click here to read the full answer of the expert|
|EXPERT:||CA. H. N. Motiwalla|
|SECTION(S):||44AB, 44AD r.w.s. 44AB|
|CATCH WORDS:||Audit of accounts – Business – Profession -Tax Audit u/s. 44AD r.w.s. 44AB)|
From the above stated fact, it is clear that during the financial year 2016-17, a firm has incurred loss of Rs. 10,000/-, however, its turnover is less than Rs. 1/- crore, so a firm is eligible assessee under section 44AD of the Act.