Applicability of section 44ab
This query is : Resolved
Querist : Anonymous
Querist :
Anonymous
(Querist)
08 December 2011
Suppose a person carries on a retail trade having a gross turnover Of 250000/- and a wholesale business having turnover of 5800000/-. Is he liable to get his books of accounts audited u/s 44AB. If Yes, Then please reply soon and also refer to any case law, if any.
Aditya Maheshwari
(Expert)
08 December 2011
Since the total turnover of the assessee crosses Rs. 60 lakhs he is liable for audit u/s 44AB
Message likes :
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Ratan Sharma
(Expert)
08 December 2011
Agreed with expert. Now sec. 44AD covers retailers as well as wholesellers. Therefore books got to be audited.
DEEPIKA GOEL
(Expert)
09 December 2011
There is one suggestion to avoid the applicability of section 44AB (tax audit). Its better to segregate two business and form partnership firm or company. By having a apparent look, turnover from two different business i.e. retail trade and wholesale market does not exceed Rs. 60 Lacs to fall under the condition of tax audit.
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