Hello everybody,
I have a client who sells vegetables in retail and his sales approx per year is around 10 lakhs. now question arises that he is fulfiling conditions of section 44AA (i.e. maintenance of Accounts) but practically its not possible for a sabjiwala to maintain accounts or inventory details. now how to show his income?? he cant keep books of accounts...
Suggest me friends, if you have been with such type of situation or have any idea regarding that.
Thanks & regards
Alok
Yes you should apply sec 44 AD & show a profit minimum @ 8 % on sales
Yes you should show the profit u/s 44AD @ 8% minimum on th sales.
Agreed with Deepak and Nitin
In case regular Books of Accounts are not possible to maintain, he can be advised to record his daily Sales & Purchases.
If he gets purchase vouchers/bills from the Wholesale Market , tell him to compile all those datewise. Even Slips on Plain Piece of Papers can help manytimes. DO NOT RELIEVE THE CLIENT FROM THE BURDEN, ULTIMATELY THAT ONLY WILL BE HELPFUL TO BOTH HIM AND THE CONSULTANT.
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Thanks to all of you.
But if i will apply section 44AD then i have to pay 8% and as you all can understand that client is a vegetable shop owner, he will never prefer to pay tax. Apart from this expenses will also not be allowed.
go for presumptive taxes u/s 44AD..
If his sales is around 10 lakhs then show his income around minimum 8% which will be below exemption limit...
i have done the same mr Sidhharth. I just have problm if the file goes into scrutiny then i will not have any proof to show.
CAclubindia
