when sales of shares exceeds 40 lacs

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mohit arora (Querist)
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26 May 2008 sir, i am dealing in purchase and sales of shares on delivery basis. if my sales exceeds 40 lacs then i have to audit. we have received three statements from our broker 1) contract notes 2)profit&loss account 3)ledger . by providing all these statements to my CA, audit will be possible or not. whether i have to maintain any accounts in addition to providing all the above statements or there is no need of it. SIR SOMEONE TOLD ME THAT YOU HAVE TO PROVIDE ONLY THREE STATEMENTS AND NEED NOT TO MAKE ANY ACCOUNTS

S.Srinivasaraghavan

S.Srinivasaraghavan (Expert)
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26 May 2008 Repeated query, already answered

R.V.RAO

R.V.RAO (Expert)
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26 May 2008 SEC 44 AA AND RULE 6 F SPECIFY BOOKS OF ACCOUNTS TO BE MAINTAINED BY SPECIFIED PROFESSIONS. YOURS IS NOT UNDER SPECIFIED PROFESSIONS.
THE CBDT HAS NOT PRESCRIBED ANY BOOKS OF ACCOUNTS FOR YOUR CATEGORY.
HOWEVER SUCH PERSONS ARE REQUIRED TO MAINTAIN SUCH BOOKS OF ACCOUNTS AND OTHER DOCUMENTS AS MAY ENABLE THE ASSESSING OFFICER TO COMPUTE THEIR TAXABLE INCOME UNDER IT ACT.THEREFORE YOU MAY SUBMIT THE AVAILABLE RECORDS TO YOUR AUDITOR (FOR TAX AUDIT) WHO WILL COMPLETE TAX AUDIT AND SUBMIT REPORT.IF THERE ARE ANY FURTHER REQUIREMENTS OF BOOKS OF ACCTS,YOUR AUDITOR SHALL LET YOU KNOW.
HOWEVER IT IS THE ASSESSING OFFICER WHO IS THE ULTIMATE TO CALL FOR SUCH BOOKS OR RECORDS AS MAY BE REQUIRED.BUT BASIC BOOS LIKE LEDGER AND CONTRACT NOTES ARE ALREADY WITH YOU.BANK BPPK OR CASH BOOK MAY ALSO BE ASKED IF NECESSARY, IF ASSESSING OFFICER IS NOT SATISFIED WITH TAX AUDIT REPORT AND AVAILABLE RECORD.
R.V.RAO

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