Whether tax audit is applicable?? urgent!!!

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

10 February 2013 Dear Expert,
My net turnover of Business is 99.50 lacs( after VAT & Service Tax -Work Contract business)

Pls tell me whether Tax audit is applicable in my case???

Pls Reply..

CA PARAS BAFNA

CA PARAS BAFNA (Expert)
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10 February 2013 If you are a business man get the Accounts audited.
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And if you are not a business man -or asking for academic purpose only-
Tax Audit is not applicable from AY 2013-14.
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Querist : Anonymous

Querist : Anonymous (Querist)

10 February 2013 sir,

I am Business Man..(Prop.)
Holding PTEC No.
Having Service Tax & VAT registration no.

sir, while calculating turnover limit, what shall we consider - Gross turnover or Net turnover??

I am showing Net turnover of Purchases & sales in P&L A/c

CA PARAS BAFNA

CA PARAS BAFNA (Expert)
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10 February 2013 Sorry....I have forgot to mention one adjective "Real " with the business man who was supposed to get his accounts audited.

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A "Real Business Man" is that person who makes cost benefit analysis. You may also analyse- whether you will be benefited by paying tax on 8% of turnover on presumptive basis or on your actual profit which may be less that 8%.
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For turnover purpose, U/s 44AB, as per the prescribed Guidance Note of ICAI-
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The term ‘turnover’ may be interpreted to mean the aggregate amount for which sales are effected or services rendered by an enterprise. If sales tax and excise duty are included in the sale price, no adjustment in respect thereof should be
made for considering the quantum of turnover.
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Trade discounts can be deducted from sales
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If, however, the Excise duty an / or sales tax recovered are credited separately to Excise duty or Sales tax Account (being separate accounts) and payments to the authority are debited in the same account, they would not be included in the turnover.
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However, sales of scrap shown separately under the heading ‘miscellaneous income’ will have to be included in the turnover.

Querist : Anonymous

Querist : Anonymous (Querist)

10 February 2013 Thank you sir for your valuable reply.

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