Turnover less than 1 crore and profite less than 8%.

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NANDAN

NANDAN (Querist)
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26 June 2018 https://taxguru.in/income-tax/tax-audit-turnover-1-crore-net-profit-8.html Is this real?????

Nikhil Kaushik

Nikhil Kaushik (Expert)
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26 June 2018 it is an opinion that has been previously used too as we can contend that we are maintaining books and therefore not covered under 44AD anyway

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RAJA P M

RAJA P M (Expert)
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27 June 2018 Dear Mr Nikhil Kaushik Ji... What is the exact Solution of above way...? Please give solution...

KAVIRAJA ADDANGADI

KAVIRAJA ADDANGADI (Expert)
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27 June 2018 If you want to show less than 8% on gross turnover than you have to get audited and furnish a report of such audit as required under section 44AB.

Nikhil Kaushik

Nikhil Kaushik (Expert)
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27 June 2018 if you read the act, it doesn't mandate me to not maintain books if my turnover is below 1 cr. So if I am anyway maintaining books, then no one can force me to fall under 44AD. I can simply be maintaining books under 44AA.

However, we generally do not go with this opinion because the cost of compliance is much less compared to cost of non-compliance (penalty etc) if the ITO doesn't agree with our position. cost of litigation in terms of time and money is anyway way too high

RAJA P M

RAJA P M (Expert)
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27 June 2018 Dear Mr Nikhil Kaushik Ji.,

I'm not crossed your reply...

I ask to you some clarity about the same. If less than 1cr and Profit less than 8%. Some of CA says Audit required and Some of says not required then Which one is correct?

Please revert it

Nikhil Kaushik

Nikhil Kaushik (Expert)
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27 June 2018 I already gave you my answer. it is a position and is subject to litigation.

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