11 October 2019
A person is required to get his accounts audited u/s 44AB if TURNOVER of business exceeds Rs 100 Lakhs, or In case of Profession Gross Receipts exceed Rs 50 Lakhs. In the “Guidance Note on Terms used in Financial Statements” published by ICAI, “the expression “Sales Turnover” has been defined as: “The aggregate amount for which sales are effected or services rendered by an enterprises.
In simple terms, 44AB is based on turnover. It has nothing to do with purchases or closing stock.
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