One proprietorship firm paying quarterly tax around 8000 Rs. Its turnover is less than 10 lakh per annum. someone advise it to pay 8% of total profit and no other formalities.
10 September 2011
If the firm is carrying out specified business as mentioned in Section 44AD then you can show income @ 8% of the turnover and pay tax accordingly to the applicable slab rates.
Further the section is not applicable to professional firms.
10 September 2011
Tax quantum is not criteria for Tax Audit.If you have not specified profession need not to make audit.But you may maintain Books of account, though it is compulsory if net income more than 8% of Gross income.If your addition in Capital is not as equal 8%,show more than 8 % profit which creates your proper wealth.It is not rule that profit must be equal 8%, it may be higher.Consider Personal Withdrawals.
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