Turnover for audit be net of return or gross
This query is : Resolved
Querist : Anonymous
Querist :
Anonymous
(Querist)
04 April 2016
Hi,
If individual firm having Sales Rs.1,07,00,000 and Sales Return is of Rs. 10,00,000. and Net Profit is Rs. ,500,000. So, I Have to do audit either u/s 44AD or 44AB. But Question is that weather turnover i should take is Rs. 10700000(Gross) or Rs. 9700000(Net of sales return)???
if audit is under 44ad, then no need of to deducted Tax (TDS) for commission next year.
Plz Help
If individual firm having Sales Rs.1,07,00,000 and Sales Return is of Rs. 10,00,000. and Net Profit is Rs. ,500,000. So, I Have to do audit either u/s 44AD or 44AB. But Question is that weather turnover i should take is Rs. 10700000(Gross) or Rs. 9700000(Net of sales return)???
if audit is under 44ad, then no need of to deducted Tax (TDS) for commission next year.
Plz Help
05 April 2016
Audit should be conducted under section 44AB because turnover means Gross Turnover/Gross Receipt. Hence liable for Audit u/s 44AB.
08 April 2016
The wordings used in section 44AB is "Total Turnover" and not "Gross Turnover." Total turnover means net of Sales Returns. Hence, in the instant case, the audit will be conducted u/s 44AD and not u/s 44AB.
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