CA Umesh Sharma
Quick Summary
Arjuna (Fictional Character): Krishna, This week we will be celebrating Ram Navami the birth of Maryada Purushottam Shri Ram. How excited are you to celebrate this auspicious event? Krishna (Fictional Character): Arjuna, Ram Navami is celebrated with great enthusiasm in our country. Shri Ram is a
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FAQ :
A tax audit is mandatory if a business's total sales, turnover, or gross receipts exceed Rs. 1 crore in a financial year. This limit increases to Rs. 10 crores if cash transactions are 5% or less of total receipts and payments. For professionals, the threshold is Rs. 50 lakhs, increasing to Rs. 75 lakhs if cash transactions are 5% or less.
Business expenditures above Rs. 10,000 paid in cash in a single day are disallowed. Additionally, cash receipts exceeding Rs. 2 lakhs from a single person in one day attract a 100% penalty for the receiver.
Presumptive taxation simplifies tax calculations for small businesses and professionals. Businesses with a turnover under Rs. 2 crores (or Rs. 3 crores if cash transactions are minimal) and professionals with turnover under Rs. 50 lakhs (or Rs. 75 lakhs if cash transactions are minimal) can opt for this scheme.
Businesses supplying only goods need to register for GST if their turnover exceeds Rs. 40 lakhs. Businesses supplying goods or services must register if their turnover exceeds Rs. 20 lakhs, with a lower threshold of Rs. 10 lakhs in special category states.
Small businesses with an annual turnover of up to Rs. 1.5 crore can opt for the GST composition scheme, which offers simplified tax payments at a reduced rate, but prevents claiming Input Tax Credit.
E-invoicing is mandatory for businesses with turnovers exceeding Rs. 5 crores in any previous financial year for B2B and export transactions, effective from 1 August 2023.
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