For audit
SUBHASH MISHRA (ADVOCATE) (101 Points)
04 August 2016SUBHASH MISHRA (ADVOCATE) (101 Points)
04 August 2016
kanagaraj
(CHARTERED ACCOUNTANT)
(793 Points)
Replied 05 August 2016
SINCE SECTION 44 AB STATES IF THE GROSS RECEIPTS EXCEEDS CERTAIN LIMIT THE ACCOUNTS NEEDS TO BE AUDITED. SINCE YOUR GROSS RECEIPTS ARE >1 CRORE YOUR ACCOUNTS OUGHT TO BE AUDITED OTHERWISE PENAL PROVISONS ATTRACT
Shubham Gupta
(Business Consultants)
(2077 Points)
Replied 05 August 2016
first you should not have shown income from trading , but should have shown commission income since client is goint agent job and is not charging any margin during sale.(considering no invoice was raised to buyer other than commission charges)
During your scrutiny proceding you can state that you have shown actual profit only , and income was shown from trading in place of to be shown under commission income.And it was an honest mistake and request to drop penalty.