Do LLP accounts need to be audited?
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Do LLP accounts need to be audited?
LLPs are required to have its accounts audited by a practicing Chartered Accountant if its annual turnover, in any financial year exceeds Rs. 40 lakhs or its contribution exceeds Rs. 25 lakhs.
Is audit compulsory if profit less than 8?
From the example 3 and example 4 it is observed that where the assessee has turnover less than Rs 2 Crores and declares profit less than 8\%/6\% tax audit is applicable, where as in case the assessee has turnover between 2 Crs to 5 Crs, no tax audit is applicable even if he has declared profits less than 6\%/8\%.
What if turnover is less than 1 crore?
Turnover (Rs.) In this case if an assessee who has never opted the provisions of sec 44AD of the Act will not be required to get his books of accounts audited if his turnover is below Rs. 1 crore even if his declaring profits below 8\% or 6\% of turnover because sec 44AD(4) is not applicable in his case.
Who is required to get their accounts audited?
Audit Requirements
| Tax Payer | Compulsory Audit required when |
|---|---|
| A person carrying on Business | If total sales, turnover or gross receipts are more than Rs. 1 crore |
| A person carrying on Profession | If gross receipts are more than Rs. 50 lakh |
Is LLP liable for tax audit?
Every LLP whose turnover exceeds INR 1 Cr. in case of a business or INR 50 Lakh in case of a profession, is required to get its books of accounts tax audited under section 44AB of the Income-tax Act. Such audit will have to be completed and filed by 30th September.
What is annual compliance for LLP?
As per the Income Tax Act, all LLPs are required to close their financial year by the 31st of March and accordingly file the returns with the IT Department. LLPs with an annual turnover of more than Rs. 60 lakh need to get their books audited and file their return latest by 30th September every year.
What are the annual filings for LLP?
LLP Form 8 is an annual filing is to be filed with ROC every year. Statement of account and solvency shall be filed with the registrar within 30 days from the end of 6 months of the financial year to which the statement relates. The due date for LLP annual filing is 30th October 2020.
Can I show profit less than 8\%?
In that context, as per Income Tax laws, you cannot declare profits less than 6\% or 8\% applicable of turnover. However, if you’re not bound to file your returns u/s 44AD, it would be better to declare your actual profits, if you’re not incurring loss, and thus audit.
What if my profit is less than 8?
(a) If total income is less than Basic Exemption Limit : The assessee can claim less than 8\% / 6\% net profit without audit and accounts liability. (b) If total income is more than Basic Exemption Limit : The assessee can claim less than 8\% / 6\% net profit with audit and accounts liability.