rajesh (Accountant) (583 Points)
19 July 2011Dear Sir
An Asseesse His Totoal Gross Receipts(Running a Cenema Theater) during the F.Y. 10-1128,50,000/- as per Books His Net Profit is 98,500/- i.e. 3.45% of Total Tournover. As per New Rules for sec. 44AD He is not shown 8% on His total turnover at this time he is Compulsory Audited his books u/s 44AB or Not . Please Tell.
Thanks in advance
Anshu Garg
(working)
(139 Points)
Replied 19 July 2011
definatly,
assesse is liable for audit u/s 44ab and maintain accounts u/s 44aa.
but if his total income is not exceed the maximum limit, then he is not liable for audit his accounts even he shows a lower profit.
@*CS Siddharth Bumb. *
(B.Com, CA Final, CS )
(5270 Points)
Replied 19 July 2011
yes it is compulsary...he is liable for tax audit if he is not showing bet profit @ 8%
REETU
(ACCOUNTANT)
(26 Points)
Replied 19 July 2011
Mr. Rajesh
The Assessee is liable to have Tax Audit U/S 44 AB And Also have to maintain Proper Books of Accounts U/s 44AA if he shows his Net profit less than 8% of his gross receipts.
JAY PRAKASH PATIDAR
(CA)
(69 Points)
Replied 19 July 2011
Notwithstanding anything contained in the foregoing provisions of this section, an eligible assessee who claims that his profits and gains from the eligible business are lower than the profits and gains specified in sub-section (1) and whose total income exceeds the maximum amount which is not chargeable to income-tax, shall be required to keep and maintain such books of account and other documents as required under sub-section (2) of section 44AA and get them audited and furnish a report of such audit as required under section 44AB.
Hardik
(Business Analyst)
(58 Points)
Replied 19 July 2011
| Originally posted by : JAY PRAKASH PATIDAR | ||
 |
Notwithstanding anything contained in the foregoing provisions of this section, an eligible assessee who claims that his profits and gains from the eligible business are lower than the profits and gains specified in sub-section (1) and whose total income exceeds the maximum amount which is not chargeable to income-tax, shall be required to keep and maintain such books of account and other documents as required under sub-section (2) of section 44AA and get them audited and furnish a report of such audit as required under section 44AB. |
 |
So, as per these wordings, if the assesse does not have any other income, then No Audit is required.. Right?
Maqbulhusen Malaiwala
(Accountant)
(48 Points)
Replied 19 July 2011
I think all of you are either not able to understanding the question presented by Mr. Rajesh. The answer should is yes, The assesee is required to get his books of accounts audited, just because he is claiming profit less than 8%, though his gross total income does not exceed Rs.60.00 Lacs. Please interprete the section carefully.
44AD. (1) Notwithstanding anything to the contrary contained in sections 28 to 43C, in the case of an eligible assessee engaged in an eligible business, a sum equal to eight per cent of the total turnover or gross receipts of the assessee in the previous year on account of such business or, as the case may be, a sum higher than the aforesaid sum claimed to have been earned by the eligible assessee, shall be deemed to be the profits and gains of such business chargeable to tax under the head “Profits and gains of business or profession”. PRESEMPTIVE SCHEME
(5) Notwithstanding anything contained in the foregoing provisions of this section, an eligible assessee who claims that his profits and gains from the eligible business are lower than the profits and gains specified in sub-section (1) and whose total income exceeds the maximum amount which is not chargeable to income-tax, shall be required to keep and maintain such books of account and other documents as required under sub-section (2) of section 44AA and get them audited and furnish a report of such audit as required under section 44AB.
Deepak Agarwal
(Chartered Accountant)
(117 Points)
Replied 19 July 2011
He is required to get his accounts audited only if his total income exceeds the Basic Exemption limit...
if it does not exceed basic exemption limit, then even he declares net profit below 8 %,,, he is not required to get his accounts audited..!!
Mukesh Kumar Singh
(CA-FINAL)
(4094 Points)
Replied 20 July 2011
Mr. Rajesh
The Assessee is liable to have Tax Audit U/S 44 AB And Also have to maintain Proper Books of Accounts U/s 44AA if he shows his Net profit less than 8% of his gross receipts.
CAclubindia
