AUDIT ELIGIBLE

This query is : Resolved

SUMRANI SADIQ (Querist)
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19 July 2011 DEAR SIR,

MY CLIENT TURN OVER ANNAUAL 40 TO 50 LACS HIS PROFIT RATION WITH 3% WITH TRADING
NOTE MORE THAN 3% BUT LESS IF CUSTOMER PAYMENT GIVEN BEFORE DUE DATE WE DEDUCT 1% OR 2% AVARGE OUR PROFIT RATION IS 1.5% SO OVER LIABILLTY FOR AUDIT UNDER SEC.44AD

THANKS`S & OBLIGE

CA. Krishna K Neeraj

CA. Krishna K Neeraj (Expert)
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19 July 2011 If your profit is less than 8% of gross receipt, you will have to get your accounts audit ed U/s 44AB.

Amol Gopal Kabra (CA,CS,DISA)

Amol Gopal Kabra (CA,CS,DISA) (Expert)
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19 July 2011 Section 44AD requires that if the turnover is less than Rs. 60 lakhs then the assessee will not be required to maintain books of accounts and get them audited if he declares his income @ 8% on Turnover. However, in your case, the income is around 2% of the turnover, so you are required to maintain books of accounts and get them audited u/s 44AB.

C A S.S.Agarwal, M.Com.,LL.B,

C A S.S.Agarwal, M.Com.,LL.B, (Expert)
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19 July 2011 I agree with the expert with the remarks that if your total profit exceeds 1.20 lacs then you have to maintain the books of account. If profit is less then 8% then you are liable for Tax Audit and turnover should not exceed 60 L.

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