Milk Sales Income

MY CLIENT HAVE PROVISION STORE IN F.Y 20-21 THEY SALES  4200000/- MILK PACKET ( AMUAL MILK PACKET) SALES 

PLEASE TELL ME IF I SHOW 4200000/- IN ITR 4  @ 8% THEN OK OR IT REQUIRED AUDIT.

& THERE ARE LAIBILE FOR GST REGISTRATION OR NOT.

Replies (4)
Quick Summary
This discussion addresses a client with substantial milk packet sales of £4,200,000 in FY 20-21. The core questions revolve around whether to declare this income in ITR 4 using the 8% presumptive taxation scheme, if an audit is required, and if GST registration is necessary. Advice suggests that if sales are on a commission or service charge basis, the 8% presumptive tax may not apply, necessitating a P&L account. Generally, an audit is not required for turnovers below £1 crore, but the nature of the business (e.g., commission agent) could affect the applicable ITR form.

1.Milk is exempted goods

2.Please check whether he is having contract with Amul. 

3. Tax will be on sales commission/service charges

4.If he purchase with GST, Then he can apply for GST Reg

5.No audit is required

Agreed with Mr. Jeeva

If is it on commission / service charges basis then cannot offer 8% of turnover. You will have to prepare P/L account. Form 26AS will come handy while deciding this.

Regards
CA. Raj Doshi
Not required for tax audi, go for presumptive taxation @ 8% of turnover

if you are a commission agent then you can not adopt 44AD but you have to go for normal business return that is ITR 3 by preparing PandL and BS. and audit is not required as turnover is below 1CR.

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