I purchase shares of 2 lakhs daily and sell them on the same day. (marginplus)
so the annual turnover will exceed 60 lakhs.
and as per sec 44AB of IT Act it is compulsory to get accounts audited, for the assessee whose annual turnover exceeds 60 lakhs.
so is there any provision to get rid of audit or i have to get my accounts audited......
thanks.....
Pankaj Arora
(Learner)
(3134 Points)
Replied 01 February 2011
Its compulsory to get audit if your turnover has exceeds 60Lakhs.
Member
(Management)
(325 Points)
Replied 01 February 2011
You can't " get rid " of audit, unless you can successfully make out a case that the trading was on behalf of others and what you get is only commission. But in this case, the Assessing Officer will probably point out that your gross receipts (not turnover, since for commission income the term "turnover" cannot be used) still exceeded the limit u/s 44AB.
Don't you think that it is too much trouble just to get out of audit and risking penalty u/s 271B?
CA MAULIK
(C.A)
(937 Points)
Replied 02 February 2011
@ member:dnt u think dat in case of commission also ,,tax audit is there..............plz confirm dat also.......
praveen
(Chartered Accountant)
(6971 Points)
Replied 02 February 2011
ya in case of brokers dealing in shares of other people the turnover would not have affected the audit provisions. but as you are trading for youself I think it is better to get your accounts audited.
Commission receipts of a broker is receipt and if it exceeds 60L then audit provisions are applcable under the IT act.
Vikash Kumar
(Manager Accounts (CA. Final))
(694 Points)
Replied 02 February 2011
@ Gaurav
If the total of profit & loss seperately of your margin trading is above than tax audit limit , then go for tax audit. In marging trading, turnover is calculated on net effect, i.e. Sale-(purchase+brok.). Transaction of marging trading are under speculative transaction.
sandeepverma
(don't make exuse for study)
(304 Points)
Replied 02 February 2011
if your commission receipt more than 60 lkh than you need for audit otherwise you can clear the term to Assessment officer to we trade to other people behalf for only commission not for profit or loss of there share so till your commission amount not exceed 60 lac don't need to audit
and simple advise if you want trouble out all these kind problem simply go for audit for account its also better for your internal and satatury purpose
Bimal Thacker
(Proprietor)
(762 Points)
Replied 02 February 2011
I think you are talking about Intra Day transaction and not delivery based transaction. In your case, if it is intra day transaction turnover of 60 lacks will be difference of sale and purchase Positive of negative. Suppose on 01.01.2011 your purchase is 200000 and sale of same on 01.01.2011 is 205000, on 02.01.2011 your purchase is 500000 and sale of same at 485000 (i.e.at loss) then your turn over (for tax audit calculation of 60 lacks) will be 5000+15000 =20000
Vikash Kumar
(Manager Accounts (CA. Final))
(694 Points)
Replied 02 February 2011
just see the link-
/experts/turnover-caculation-422205.asp
Bimal Thacker
(Proprietor)
(762 Points)
Replied 02 February 2011
The turnover calculation as I have mention is on the basis of Guidance note on tax audit (revised 2005 edition) issued by the Institute of Chartered Accountants of India. refer the same for details
Ajay Kumar Thakur
(Accounts Manager)
(33 Points)
Replied 04 March 2011
What is the definition of turnover in case of income tax audit u/s 44AB...
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