proprietorship business

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NIMESH MANPURIA (Querist)

24 June 2010 MY CLIENT HAS A PROPRIETORSHIP BUSINESS,HIS TURNOVER IS 64LACS.NET PROFIT IS 2.10 LACS.HE PAY 25K PREMIUM IN AGGREGATE IN HIS WIFE AND CHILDREN NAME IN LIC.HE HAS SHOWN THESE EXPENDITURE IN HIS BOOKS AS DRAWING.WHAT TYPE OF AUDIT HIS BUSINESS NEEDS TO BE DONE.ONLY TAX AUDIT WILL BE SUFICIENT OR NEED STAT AUDIT ALSO.HOW CAN HE CLAIM DEDUCTION FOR HIS PREMIUM EXPENSE.

Aditya Maheshwari

Aditya Maheshwari (Expert)

24 June 2010 For proprietorship only TAx audit necessary as turnover exceeds Rs. 40 lakhs.

Also check if VAT is being payable on sales then VAT audit also compulsory.

NIMESH MANPURIA

NIMESH MANPURIA (Querist)

24 June 2010 SIR,VAT IS PAYABLE .HE HAS NO OTHER SOURCE OF INCOME.IS HE HAS TO FILE HIS PERSONAL RETURN ALSO.HOW CAN HE CLAIM DEDUCTION FOR PREMIUM PAID FOR HIS WIFE'S POLICY?

NIMESH MANPURIA

NIMESH MANPURIA (Querist)

24 June 2010 SIR,VAT IS PAYABLE .HE HAS NO OTHER SOURCE OF INCOME.IS HE HAS TO FILE HIS PERSONAL RETURN ALSO.HOW CAN HE CLAIM DEDUCTION FOR PREMIUM PAID FOR HIS WIFE'S POLICY?

Aditya Maheshwari

Aditya Maheshwari (Expert)

24 June 2010 If VAT payable then VAT Audit liable.

He can claim deduction of premium paid on wifes policy. However debit it to LIC in his personal books.

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