Applicability of section 44ab

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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

Aditya Maheshwari (Expert)
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08 December 2011 Since the total turnover of the assessee crosses Rs. 60 lakhs he is liable for audit u/s 44AB

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Ratan Sharma

Ratan Sharma (Expert)
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08 December 2011 Agreed with expert. Now sec. 44AD covers retailers as well as wholesellers. Therefore books got to be audited.

DEEPIKA GOEL

DEEPIKA GOEL (Expert)
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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.