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44 AD - Mandatory ?

Krishna (Advocate) (88 Points)

10 July 2011

Mr. A is doing WHOLE SALE trading business in TEXTILES, His Turnover for the FY: 2010-2011 is 50,00,000.00

his net profit is 2.00.000.00, He is maintaining PROPER BOOKS OF ACCOUNTS, Please enlighten

he should show 8 % ?, otherwise Audint u/s 44ab is mandatory.

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3 Replies

M. N. JHA (CA) (8316 Points)
Replied 10 July 2011

Originally posted by : Krishna
	Mr. A is doing WHOLE SALE trading business in TEXTILES, His Turnover for the FY: 2010-2011 is 50,00,000.00 his net profit is 2.00.000.00, He is maintaining PROPER BOOKS OF ACCOUNTS, Please enlighten he should show 8 % ?, otherwise Audint u/s 44ab is mandatory.

yes as per my knowledge audit is complulsory in ur case beacuse ur profit was 4% only which is less then 8%.......... if u want to show profit less then 8% then audit is compulsory..........

shushantsinghal (BCOM(HONS),C.A) (283 Points)
Replied 10 July 2011

agreed......in nutsheel

Turnover less than 60 lakh & profit is less than 8%

Through Section 44 AD to section 44 AA & section 44ab

Bhargav (Practising CA) (567 Points)
Replied 11 July 2011

Originally posted by : Mr. JHA
	Originally posted by : Krishna Mr. A is doing WHOLE SALE trading business in TEXTILES, His Turnover for the FY: 2010-2011 is 50,00,000.00 his net profit is 2.00.000.00, He is maintaining PROPER BOOKS OF ACCOUNTS, Please enlighten he should show 8 % ?, otherwise Audint u/s 44ab is mandatory. yes as per my knowledge audit is complulsory in ur case beacuse ur profit was 4% only which is less then 8%.......... if u want to show profit less then 8% then audit is compulsory..........