Audit limit increase for msme from 1cr to 5 cr for msme

This query is : Resolved

ArpanGoenka (Querist)
Follow

10 May 2020 Our Hon. FM have announced of increasing threshold limit for auditing for msme from 1cr to 5 cr. We are unable to get official notification. Pls give link. my email id arpangoenka@gmail.com

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
Follow

10 May 2020 The following amendment only made in Finance Act 2020. No general increase in turnover for MSME made. The condition of less than 5% turnover and expenses applicable for MSME also.

In section 44AB of the Income-tax Act,––
(A) in clause (a),––
(i) the word “or” occurring at the end shall be omitted;
(ii) the following proviso shall be inserted, namely:––
‘Provided that in the case of a person whose––
(a) aggregate of all amounts received including amount
received for sales, turnover or gross receipts during the previous
year, in cash, does not exceed five per cent. of the said amount; and
(b) aggregate of all payments made including amount incurred
for expenditure, in cash, during the previous year does not exceed
five per cent. of the said payment,
this clause shall have effect as if for the words “one crore rupees”, the words
“five crore rupees” had been substituted.

With the above condition only

ArpanGoenka

ArpanGoenka (Querist)
Follow

10 May 2020 Sir.
What about 6% NP criteria. It doesn't matter. Above everything fullill but NP is 4% then also audit not required. Kindly give Ur number.my contact 9830096144

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
Follow

10 May 2020 Audit applicable in case of 4% profit declared having taxable income.

ArpanGoenka

ArpanGoenka (Querist)
Follow

10 May 2020 In case NP is 6.5% then ?

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
Follow

10 May 2020 Audit not applicable in case of 6% profit on bank transfer and 8% profit on cash trading.

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now