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44AB Case

Narayan paudel (FINAL) (205 Points)

28 March 2009

Sales = 42,00,000

Sales Return = 4,00,000

Total Sales = 38,00,000

IS This Case Is AuDit CASE U/s 44AB Or Not??????

thanks in advance...

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6 Replies

Sumit Jain (CA) (4760 Points)
Replied 28 March 2009

CA. AMIT BHUTANI (JOB) (124 Points)
Replied 28 March 2009

audit never

Narayan paudel (FINAL) (205 Points)
Replied 28 March 2009

any reference book for this pls???

CA. PRANAV K LIMAJA (CHARTERED ACCOUNTANT) (44 Points)
Replied 28 March 2009

If the sales return is well within the period of 6 months it will be treated as sales of Rs. 3800000/-. We have to take references from other laws if it is not clear from the same Act. Also in case of sales returns the conditions of comodities returned should be checked wether it is returnable or not? It might be possible that the scrap is returned and shown to avoid tax audit U/s. 44AB

pankaj (article) (107 Points)
Replied 29 March 2009

No, the assessee will not be liable for the tax audit because the net sales should be greater that or equal to Rs.40 lakhs. In the above case as per sec.44AB(a) if the total sales or tirnover exceeds Rs. 40 lakhs in any previous year then the assessee shall be liable for tax audit.