AUDIT U/S 44AB IS MANDATORY

IAM DEALING IN MOBILE CURRENCY MY TOTAL SALES RS 1CRORE AND 20 LACS IN FINANCIAL YEAR 2020-21. MOBILE CURRENCY UNDER GST ACT COMES UNDER SERVICES. U/S.44AB AUDIT IS MANDATORY
Replies (10)
Quick Summary
This discussion clarifies whether an audit under Section 44AB of the Income Tax Act is mandatory for a mobile currency business with sales exceeding ₹1 crore 20 lakhs in FY 2020-21. As mobile currency is treated as a service and the turnover surpasses the ₹50 lakh threshold, Section 44ADA is not applicable. The conversation explores potential exemptions, particularly under Section 44AD, if the business conducts over 95% of transactions digitally, which could raise the turnover limit to ₹5 crores. However, for commission-based income, Section 44AD is generally not applicable, making an audit likely mandatory unless specific conditions are met.

What is mobile currency??

As you are saying it is a service and it exceeds 50 lakhs and also it is not a specified service as per 44AA hence you can't go with 44ADA. 

So you have no other option except go for audit.

Will you get commission for this mobile currency service?? if so in that case also 44ADA is not applicable.

If u can declare 8% of turnover as profits then go for 44ad
I will get commission rs 10lacs.then what to do
If your receipts and payments is 5% in cash and 95% in online mode then for audit purpose turnover will be 5 crores rupees and in case receipts and payments are greater than 5% in cash then turnover limit will be 1 crores rupees
For commission business 44AD won't be applicable. and we have relief for assessees who are doing business and making turnover up to 5 Cr subject to the following conditions.

when cash receipt and payment made during  the year does not exceed 5% of total receipt or payment, as the  case may be.

In other words, more than 95% of the business  transactions should be done through banking channels.
It is very rare to see a small business receiving 95% or more of sales in cash.
Just telling there is a provision available to escape audit. otherwise he has to go for audit as per my understanding.

I agree with the above comments

Please replace cash by bank in my previous comment
I observed it veer😊

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