Whether Tax Audit is applicable?
This query is : Open
Deepesh Ashwin Shah
(Querist)
25 December 2009
A compot lottery shop whose turunover is of 30,000/day but his margin is of flat 3% of on sales. Description of one transaction:
If and if cleint comes then shop owner purchases the lottery and sells instantly and the profit or loss for the purchaser is declared in one hr. Futher, he does not keep any stock for the day of lotteries. Its pure purchase and sale transaction and margin for the shop owner is margin only.
Will in the above case Tax Audit will be applicable? as the T/O for the year wil for sure exceed 40lacs? or should i consider only margin as his turn over and thus no tax sudit?
If and if cleint comes then shop owner purchases the lottery and sells instantly and the profit or loss for the purchaser is declared in one hr. Futher, he does not keep any stock for the day of lotteries. Its pure purchase and sale transaction and margin for the shop owner is margin only.
Will in the above case Tax Audit will be applicable? as the T/O for the year wil for sure exceed 40lacs? or should i consider only margin as his turn over and thus no tax sudit?
CMA Ramesh Krishnan
(Expert)
25 December 2009
For Tax audit Turn over is the Base not Margin.So plesae take turnover
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