Liable for audit

This query is : Open

Querist : Anonymous

Querist : Anonymous (Querist)

18 August 2013 small retailer has profit of 500000. Is he liable for audit u/s 44 and which accounts documents he has to mentioned.which itr he has to file.

CS,CA F,Numrologi TusharSampat

CS,CA F,Numrologi TusharSampat (Expert)
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19 August 2013 If retailer has gross turnover or gross receipts of less then 1 crore then no need to do tax audit.
Net profit is not taken for this.
File itr-4.
Books of a/c as mentioned u/s 44AA to eb maintained.

CA PARTH SHAH

CA PARTH SHAH (Expert)
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10 May 2015 Mr Sampat, please dont give incomplete advise. It is rightly said that if T/O exceed Rs 1,00,00,000 then tax audit u/s 44AB has to be undertaken. However if the T/O do not exceed 1 Cr , the the retailer has to declare net profit @ 8 % of the T/O as per section 44AD in order not to get books of account audited u/s 44AD and also do not maintain any books of accounts If the net profit is less than 8%, then books of accounts have to be get audited under section 44AB(c) and books.
of accounts have to be maintained as per section 44AA.

In your case the net profit is Rs 5,00,000. SO it means that if the T/O is 40 lakhs or more than audit has to be undertaken.

CA PARTH SHAH

CA PARTH SHAH (Expert)
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