Please Help: 44AD
Posted Date : 28-Aug-2012 , 09:41:48 am | Posted By: Gokulesh
Category :
Income Tax | Answers :
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Comments :
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Dear Sir, Can you please guide me on following issue i.r.o IT.
A new partnership firm has received advance for booking of flat Rs 2lakhs in Mar 12. The Sale side in P&L a/c is nil. All expenses i.r.o Building is in WIP. All other legal, office exp, int to partners etc of Rs 1.8 lakhs debited to P&L i.e loss to that extent in FY 11-12.
Query - As per 44AD whether Tax Audit is to be done as income is less than 8%. (i.e less than 8% *0 = 0) |
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Answers:
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 Answer by: CA Satuti Mahajan |
| As there is no sale in the F.Y. 11-12, so tax audit is not applicable.
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| Answer by: Krishna Chandra Santi |
| Receiving of advance is not an income(turnover), it is just like a liability, as no bills has been raised there. So it doesnt attract provision of tax audit.
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| Comments |
| Posted By : Gokulesh |
28-Aug-2012, 02:51:46 |
| Thanks a lot for your valuable suggestions. |
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