Sec 44AD

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

29 June 2011 Is it mandatory to get the accounts audited if income is less than 8% even though books of accounts are maintained by an eligible unit & whose turnover is between 60 lacs and 10 lacs? Whether section 44AD is applicable to manufacturing unit (individual) or to Job worker (individual) if his total turnover exeeds 10 lacs and less than 60 lacks in the above case.

C A S.S.Agarwal, M.Com.,LL.B,

C A S.S.Agarwal, M.Com.,LL.B, (Expert)
Follow

29 June 2011 44AD is very much clear that
a) Your turnover is less than 60 lacs
b) Your profit is less than 8%
If both the conditions are fulfilled you have to get your accounts audited.

In case your turnover is above 60 lacs then you are falling u/s 44AB and all limits of section 44AD are not applicable and compulsorily you have to get your accounts audited.

Amit Jain

Amit Jain (Expert)
Follow

29 June 2011 I think you wanted to say 6-10 lacs instead of 6 lacs....Section 44 AD says that you need to get tax audit if income is less than 8%, turnover less than 60 lacs and no books of accounts are maintained. Since you are already maintaining the books of account, I dont think there is a need to get tax audit done u/s 44AD

C A S.S.Agarwal, M.Com.,LL.B,

C A S.S.Agarwal, M.Com.,LL.B, (Expert)
Follow

29 June 2011 If your profit as calculated on your turn over is less then 8% the your accounts require audit

Mayur Agrawal

Mayur Agrawal (Expert)
Follow

29 June 2011 Agreed with CA. S S Agarwal

if your income is more than the income not chargeable to tax, then you have to get your accounts audited. even if you have maintained books of accounts.

manufacturer and jobworker also covered u/s. 44AD.

Message likes : 1 times

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now