28 July 2013
Dear Sir, In one of the case actual profit rate is about 3% however assessee opts section 44AD. In the above case actual closing stock is about Rs. 4 lacs but if I make trading a/c acoording to profit u/s 44ad then closing stock comes to about 6 lacs.
Now please advise me how to manage the problem and in return I should show actual closing stock of Rs. 4 lacs or I should show it Rs. 6 lacs.
28 July 2013
No need to prepare financial statements, if presumptive taxation is opted. Closing stock should be the actuals irrespective of 44AD opted or not.
28 July 2013
Actually, I need to prepare to submit at bank, if I prepare it on actual profit and closing stock basis then it create contradiction with profit shown in return.
And Bank person insist on trading a/c with copy of return to submit at bank.
CAclubindia
