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

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NANDAN

NANDAN (Querist)

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)

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)

27 June 2018 Dear Mr Nikhil Kaushik Ji... What is the exact Solution of above way...? Please give solution...

KAVIRAJA ADDANGADI

KAVIRAJA ADDANGADI (Expert)

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)

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)

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)

27 June 2018 I already gave you my answer. it is a position and is subject to litigation.

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