Gross Profit

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This query is : Resolved

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This discussion addresses concerns about stable Gross Profit (GP) and Net Profit (NP) percentages year-on-year. The advice given is that as long as the net profit meets the required threshold (8% or 6% of turnover), there's no immediate problem, but tax audit provisions must be adhered to.

Sumit Arora

Sumit Arora (Querist)
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19 March 2020 Dear Sir,

In previous year 18-19 in books of account my GP Was 8.90% and NP was 4.31% in this current year 2019-2020 My Gross profit is 8.96 and NP is 4.34%.
Can we face any problem
Please guide to us

Eswar Reddy S

Eswar Reddy S (Expert)
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19 March 2020 If the net profit is less than 8%/6% of turnover then you must audit your books of accounts.. There is no problem in increase or decrease in profits but it should comply with tax audit provisions

Sumit Arora

Sumit Arora (Querist)
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20 March 2020 Thank you Very much Sir,

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