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?
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.
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.
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