I am a Salaried Employee, got salary per month around Rs.1 lakh. Further My company said, to start a business in My Name for small projects for the FY 2016-17. In that FY 2016-17, Company sent the goods to My office Address and I forwarded to Client. In these Transactions are very low level Margins. I Purchased from Supplier (Salary Provide Company) Rs.20,22,215/- CST 2% of Rs. 40,444/-. Further I sold the Goods to client Rs.2034319 + CST @ 2% Rs.40,686/-.
This is I have done for last year. Kindly suggest, If I not declare minimum profit of 8%, Whether Tax Audit is Applicable or Not? Already I got the Salary and reached the Basic Exemption Limit.
22 July 2017
Dear Sir, Thanks for you prompt reply. If I add Net Profit of 8% on Sales, My tax liability goes higher. How can I reduce the Tax Liability?
CAclubindia
