Audit req or not

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mayur bhajiwala (Querist)
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09 June 2012 i have 5 firms of textile mfg unit
my turnover 57-58 lacs not morethan 60lacs in
each firm.actual income is 5-6% of turn over.
so,i have make audit or not.i have make return file last ay to 8% of total turn over.
my ca says if we r not going for 8% then audit will be compulsory.is this true? if yes
then whats meaning of audit limit upto 1 crore.

CA Siddhartha Bhardwaj

CA Siddhartha Bhardwaj (Expert)
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11 June 2012 1. Audit limit for AY 12-13 is Rs. 60 lakhs and not Rs. 1 crore.
2. If all the firms are proprietorship firms, then the total turnover (turnover of all the firms taken together) shall be considered for the applicability of audit.
3. Section 44AD provides that the assessee has to show income @ 8% of the total turnover.
In case the assessee claims profits lower than 8% AND his total income exceeds the exemption limit, he is required to get his accounts audited.

mayur bhajiwala

mayur bhajiwala (Querist)
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12 June 2012 is there any 8% scheam? means show profit 8% of turn over and get leave from scrrutiny.

mayur bhajiwala

mayur bhajiwala (Querist)
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12 June 2012 is there any 8% scheam? means show profit 8% of turn over and get leave from scrrutiny.

CA Siddhartha Bhardwaj

CA Siddhartha Bhardwaj (Expert)
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13 June 2012 You are an eligible assessee u/s 44AD. Accordingly, you can show income @ 8% of gross turnover.

In such a case, you are not required to get your accounts audited.

mayur bhajiwala

mayur bhajiwala (Querist)
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16 June 2012 thanks siddhartha sir

CA Siddhartha Bhardwaj

CA Siddhartha Bhardwaj (Expert)
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17 June 2012 You are welcome. You should use the thanks button to convey your thanks.

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