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
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
CAclubindia
