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Below 8% net profit but turnover not exceed 1 crore

Ajay jangir (no) (124 Points)

25 September 2019

My clint had net profit % below 8/6% but turnover not exceed 1crore whether it is required to do audit.

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10 Replies

Hitesh rawal (402 Points)
Replied 25 September 2019

Ya you can go for auditing.

RAJA P M ("Do the Right Thing...!!!") (127177 Points)
Replied 25 September 2019

Whether it is required to do audit...?

- No. If turn over not exceeding 1cr then Tax Audit not applicable...
But, Filing required u/s 44AA with BOA.

Sarath Rajendran (Nil) (2791 Points)
Replied 25 September 2019

If your profit less then 6% or 8% (of Turn Over) as the case maybe you must audit your accounts.

RAJA P M ("Do the Right Thing...!!!") (127177 Points)
Replied 25 September 2019

As per above :

No need if file with BOA...
If without BOA then Tax audit applicable

itefiling.accfin@gmail.com (48 Points)
Replied 25 September 2019

What is BOA...........

Suresh Thiyagarajan (Student) (3986 Points)
Replied 25 September 2019

1. The only criteria for carrying out tax audit u/s 44AB is only when the T.O or the gross receipts of the firm exceeds Rs. 1 crore during the year. If not then there is no need to carry out a tax audit.
2. Hence, in your case irrespective of your profit % if T.O or gross profit does not exceed Rs. 1 crore, tax audit u/s 44AB will not be applicable.
Please correct me if the above solution has an alternative view.