Gross Profit & NP Mandatory

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This query is : Resolved

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This discussion clarifies whether showing Gross Profit (GP) and Net Profit (NP) percentage ratios compared to the previous year is mandatory for businesses with turnover up to Rs. 2 Crore and audited under Section 44AB. While not strictly mandatory, the ratios should be justifiable. The provided figures show an increase in GP and NP percentages from FY 2021-22 to FY 2022-23, and it's suggested that no issues should arise from the IT department unless other anomalies like SFT reporting are present.

Vaneet Monga

Vaneet Monga (Querist)

28 March 2023 Dear Sir,

Its mandatory to show GP & NP % Ratio as per last year. Can we increase- decrease as per Compared to last year . Turnover Rs.2 Crore Books cover under Audit 44AB

Please advise Sir,

Dhirajlal Rambhia

Dhirajlal Rambhia

(Expert)

28 March 2023 Though not mandatory, but it should be justifiable.

Message likes : 1 times

Vaneet Monga

Vaneet Monga (Querist)

29 March 2023 Dear Sir,
FY 2021-22 GP Was 8.06% and NP Was 4.02% Turnover Rs.11752436/-FY 2022-23 GP is 9.10% and NP is 4.96% Turnover Rs.16653201/- So Can we face any issue from IT department
Please guide to me Sir,

Dhirajlal Rambhia

Dhirajlal Rambhia

(Expert)

29 March 2023 Unless there is any other anomaly, i.e.. SFT reporting, no problem should arise based on these data.

Message likes : 2 times

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