Save Rs 499. Go Ad-Free with CAclubindia Pro for 2 Full Years. Subscribe Now!

Query !!! plsssss help !! whether tax audit or not ??

ITR Filing 729 views 2 replies

PALASH

Nothing

2000 Points Posted on 19 September 2013

QUERY :

My client have a business of processing Gold Ornaments ( totally labor payment job i.e, Raw Gold processed into Gold Ornaments ) and have a turnover of Rs 79 lacs ( approx ) for the A.Y 2013-2014 with a net profit of Rs. 3,55,263/= ( i.e, N.P -- 4.55%), ..

My Questions :

1 ) As the N.P % is less than 8%, then , is it mandatory to get books of accounts audited ?

2) In the above case , It should be counted within limit u/s 224(1b) or not ?.

3) 3CD necessary or not ?

4) 3CA/3CB necessary or not ?

5) QUANTITATIVE DETAILS NECESSARY OR NOT ?

6) Audit Report ??

Plssssssss response as early as possible ...

Thanks..

Replies (2)

CA. Kunal Lakhotia

ACA

1006 Points Posted on 20 September 2013

audit u/s 44AB not required as turnover less than 1 crore, NP 8% matters for 44AD

Manvi Mehrotra

Associate Tax Consultant

88 Points Posted on 20 September 2013

Section 44AD is opted by the assessee in the following cases:

1. If his turnover is less than Rs. 1 Crore and he shows a profit of 8% of his turnoner

AND

2. He does not want to maintain his books of accounts.

As per your question, its a normal case...if the assessee has maintained his books of accounts, then he is not liable for audit under section 44AB and there is no requirement by the auditor to prepare Form 3CD and Form 3CB/3CA.

Audit will be required, if he has not prepared his books of accounts.