Tax audit u/s. 44ab

Save Share

This query is : Resolved

ashok bhurani (Querist)

19 July 2014 Tax audit u/s. 44AB is compulsory also for those assessee whose net profit margin is below 8%.
My query is why the assessees who are engaged in the rationing business required to get its books of accounts audited u/s. 44AB because of lower net profit margin when such lower margin is fixed by government itself.

CA UMESH DULAL

CA UMESH DULAL (Expert)

19 July 2014 If your turnover is less than 1 cr and income by applying @8% is less than 2 lacs, you need not tax audit u/s 44AB. In other case, you have to do the tax audit, if you want to show profit is less than 8%

ashok bhurani

ashok bhurani (Querist)

21 July 2014 Mr. Umesh I think you didn't understand my query.
My question is why tax audit is required when the margin is fixed by government only.

CA UMESH DULAL

CA UMESH DULAL (Expert)

22 July 2014 I do not know the reason. But, Tax audit should be looked by the prospective of Tax Laws all other laws are not relevant unless and until they are specifically provided in tax law.

CA UMESH DULAL

CA UMESH DULAL (Expert)

22 July 2014 I do not know the reason. But, Tax audit should be looked by the prospective of Tax Laws all other laws are not relevant unless and until they are specifically provided in tax law.

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