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ARVIND JAIN (Querist)
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15 September 2009 Is audit compulsory for pre-primary school having only 8 children and gross receipt of only 8000/- per month in initial stage as break even point is at least two-three years.Similarly in case of newly established trader which starts generating profits after three four years.Advise.

CA PARAS BAFNA

CA PARAS BAFNA (Expert)
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17 September 2009 No. Audit is not compulsory for all assessees. In case of a school if it is run and owned by an Individual/Firm at this level no audit is required. In case of Traders when Gross sales exceeds Rs 40.00 lacs then only audit is required.

ARVIND JAIN

ARVIND JAIN (Querist)
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18 September 2009 AS per new Finance Bill for 2009, Even samll traders with T/o less than 40 lacs have to show 8% net taxable income of gross receipts otherwise audit. Please clarify, n that case audit would be compulsory for newly established firms who incur loss in initial stages to claim loss.

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