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

Message likes : 1 times

Vaneet Monga

Vaneet Monga (Querist)
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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)
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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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