Whether Tax Audit is necessary?

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Devendra (Querist)
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09 May 2010 If at the year end 31/03/2010 my sales is Rs. 42,50,000 and on 02/04/2010 if one of my customer returns the goods worth Rs. 3,00,000, then will the sales return be considered? and do I need to get my accounts audited if sales return is deducted?

CA Shailesh +91 9393926464

CA Shailesh +91 9393926464 (Expert)
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09 May 2010 Your sales for the financial year (includind sales returns during that year)will be considered for the definition of Turnover u/s 44AB.

In Your case, sales return is arising in the subsequent year.

Hence, you are supposed to get the Tax Audit done.

CMA. CS. Sanjay Gupta

CMA. CS. Sanjay Gupta (Expert)
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09 May 2010 AGREE

CA Ravi Sisodia

CA Ravi Sisodia (Expert)
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09 May 2010 Agreed.....

Vinod Kumar Mathuria

Vinod Kumar Mathuria (Expert)
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10 May 2010 Agreed, as per the guidance note issued by ICAI, only that sales return which received in financial year under consideration should be taken, in your case sales return was made in next financial year, hence tax audit is required, however the return of sales will be considered in next financial year.

CA Amit Agrawal

CA Amit Agrawal (Expert)
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10 May 2010 For the benefit of client suggestion can be given to client to consider the sales return in FY 2009-10 on 31-03-2010. So that Provision of sec 44AB can be avoided otherwise tax audit is required.

Because as per the guidance note issued by ICAI, only that sales return which received in financial year under consideration should be taken, in your case sales return was made in next financial year, hence tax audit is required.

CMA Arif Farooqui

CMA Arif Farooqui (Expert)
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12 May 2010 agreed

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