Whether tax audit is applicable or not? pls clarify.
This query is : Resolved
22 July 2017
Dear Experts,
Greetings.
I am a Salaried Employee, got salary per month around Rs.1 lakh. Further My company said, to start a business in My Name for small projects for the FY 2016-17.
In that FY 2016-17, Company sent the goods to My office Address and I forwarded to Client. In these Transactions are very low level Margins. I Purchased from Supplier (Salary Provide Company) Rs.20,22,215/- CST 2% of Rs. 40,444/-. Further I sold the Goods to client Rs.2034319 + CST @ 2% Rs.40,686/-.
This is I have done for last year. Kindly suggest, If I not declare minimum profit of 8%, Whether Tax Audit is Applicable or Not? Already I got the Salary and reached the Basic Exemption Limit.
Kindly suggest your valuable reply.
Greetings.
I am a Salaried Employee, got salary per month around Rs.1 lakh. Further My company said, to start a business in My Name for small projects for the FY 2016-17.
In that FY 2016-17, Company sent the goods to My office Address and I forwarded to Client. In these Transactions are very low level Margins. I Purchased from Supplier (Salary Provide Company) Rs.20,22,215/- CST 2% of Rs. 40,444/-. Further I sold the Goods to client Rs.2034319 + CST @ 2% Rs.40,686/-.
This is I have done for last year. Kindly suggest, If I not declare minimum profit of 8%, Whether Tax Audit is Applicable or Not? Already I got the Salary and reached the Basic Exemption Limit.
Kindly suggest your valuable reply.
22 July 2017
If you are run Proprietor business you don't get tax audit. But, you can maintain books of accounts
CA PRAVEEN PACHALAG
(Expert)
22 July 2017
declare 8% net profit on sale and file itr 4. no need for audit.
22 July 2017
Dear Sir, Thanks for you prompt reply.
If I add Net Profit of 8% on Sales, My tax liability goes higher. How can I reduce the Tax Liability?
If I add Net Profit of 8% on Sales, My tax liability goes higher. How can I reduce the Tax Liability?
Dhirajlal Rambhia
(Expert)
13 October 2021
By declaring the income with tax audit report.
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