Please help sir

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

11 September 2013 Dear Sir.

Please Tell me sir my question is my company turnover upto 55 lakh and GP upto 9% and Net Profit upto 6.5% it will be come under tax audit or not please tell me now. I am from Kanpur U.P.
please sir help and tell me my firm is auditable or not.
Thank and regard

CA Pallav Singhania

CA Pallav Singhania (Expert)
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11 September 2013 Sec. 44AB: Audit of accounts of certain persons carrying on business or profession

Every person:

carrying on business shall, if his total sales, turnover or gross receipts, as the case may be, in business exceed or exceeds forty lakh rupees in any previous year..

Get his accounts of such previous year audited by an accountant before the specified date, and
Income on which tax is payable

8% of the gross receipts paid or payable to the assessee in the previous year on account of such business Deemed Income,

OR

A sum declared by the assessee in his return of income,

whichever is higher, shall be deemed to be the profits and gains of such business chargeable to tax under the head Profits and gains of business or profession notwithstanding anything to the contrary contained in sections 28 to 43C.

Exception:

An assessee may claim lower profits and gains than the profits and gains if he keeps and maintains such books of account and other documents as required by section 44AA and gets his accounts audited and furnishes a report of such audit as required under section 44AB.

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