Relating to FY 09-10
As per sec 44AB , A Person carrying on business, where the total sales exceeds 40 Lakhs is required to audit under the income tax. here total sales means
1 .net sales ( sales minus returns - excluding tax ) or
2. gross sales ( sales minus returns - including tax )
which one is correct .. ? pls help
one of our client's turnover is Rs. 39,99,400/- (excluding tax) is required to audit under income tax ?
Dear Suhaasa,
1) The Sales includes Net sales ie. excluding tax on sales. Without sales returns.
2) In your given case, there is no need of audit, as the net sales has not crossed the specified limit.
Regards,
Devendra
IT is sales-returns(incl tax)...................
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