Profit percentage on sale of recharge vouchers
This query is : Resolved
Querist : Anonymous
Querist :
Anonymous
(Querist)
07 December 2015
sir,
an assessee has business of selling recharge vouchers of all dish tvs. now the general margin (gross) in this line is 2-4%.
now, 44AD says to declare profit at 8% or above.
my query is : what shall be the total turnover of the assessee ? also, if profit is shown below 8% Audit is attracted, whereas he in actual has profit of 2-3% on the sales value.
Plz Note : the assesse deposited in cash all his sales amount in his savings account and has been served with a notice.
an assessee has business of selling recharge vouchers of all dish tvs. now the general margin (gross) in this line is 2-4%.
now, 44AD says to declare profit at 8% or above.
my query is : what shall be the total turnover of the assessee ? also, if profit is shown below 8% Audit is attracted, whereas he in actual has profit of 2-3% on the sales value.
Plz Note : the assesse deposited in cash all his sales amount in his savings account and has been served with a notice.
08 December 2015
His turnover or gross receipts will be equal to the total amount of recharge vouchers sold by him in the year.
If he declares less than 8% profit and his total income i.e. after providing deductions under Chapter VIA is more than the taxable limit than he will be required to get his account audited.
He has committed mistake in depositing entire sale in his savings account now he will have to explain with documentary evidence. He is advised to open a current account.
If he declares less than 8% profit and his total income i.e. after providing deductions under Chapter VIA is more than the taxable limit than he will be required to get his account audited.
He has committed mistake in depositing entire sale in his savings account now he will have to explain with documentary evidence. He is advised to open a current account.
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