Tax audit in case of multiple proprietory businesses

This query is : Resolved

Vicky Ek. (Querist)
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01 October 2016 An assessee named Mr. A is a proprietor of two businesses namely
M/s A Services & Co. & M/s A Marketing & Co. with turnover Rs 1.2 Cr & Rs 24 lakh respectively.

Will the accounts have to be merged for the purpose of Tax Audit or tax audit will only apply to the business with turnover of more than one crore.

Also, shall the accounts of both businesses be required to be merged for ITR IV purpose ?

How shall Tax Audit & ITR be in line with each other.

Solicit your views on the same.

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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01 October 2016 All the business of proprietor has to be merged for tax audit as well as for ITR.

Vicky Ek.

Vicky Ek. (Querist)
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02 October 2016 But my point is suppose one business is Electronics business with GP of 10% and the other is petrolpump with GP of 1-2%. How to report GP Ratio ?

Also addressess of Both Businesses are different. Which address to give ?

I initially thought of giving both Balance Sheets & P/L in tax audit attachement and reporting for business with higher turnover. Is this correct ?

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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03 October 2016 1 report the combined GP ratio.
2 Give your residential address.
3 Merge both balance sheet and P&L and give.

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