Tax audit
This query is : Resolved
Sowmya.S.Balan
(Querist)
02 January 2014
Dear sir
assessee has two business and the aggregate turn over is below 1 crore . one business has profit more than 8% of turn over and other one has profit at 3% of turnover of respective business. is both business are liable for audit under 44 Ab . in ITR both business are shown as normal business and not under 44 AD the 8% profit business also . whether CA has to sign both b/s & p&l & audit report
assessee has two business and the aggregate turn over is below 1 crore . one business has profit more than 8% of turn over and other one has profit at 3% of turnover of respective business. is both business are liable for audit under 44 Ab . in ITR both business are shown as normal business and not under 44 AD the 8% profit business also . whether CA has to sign both b/s & p&l & audit report
Nikhil Kaushik
(Expert)
02 January 2014
if the assessee is individual, then both business would anyways be merged into one b/s and p&l. only a single report can be issued.
check the aggregate profit %. if it is more than or equal 8%, then no need for audit. However, if the aggregate is less than 8%, then tax audit shall apply to the whole of the turnover.
check the aggregate profit %. if it is more than or equal 8%, then no need for audit. However, if the aggregate is less than 8%, then tax audit shall apply to the whole of the turnover.
04 January 2014
yes in such cases aggregate % needs to be checked as stated above.
CA Pallav Singhania
(Expert)
04 January 2014
Yes, if the profit margin is less than 8 then Tax Audit would be applicable or else a consolidated B/S and P/L will be prepared By the Auditor...
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