Do an assessee has to get his books of accounts audited if his retail sales are less than 40 lakhs and the net profit is below 5% of gross receipts?
CA. Ashok shah
(CHARTERED ACCOUNTANT)
(333 Points)
Replied 04 February 2009
Yes, the assessee is required to maintain Books of accounts and get the accounts audited u/s.44AB in respect of retail business income u/s.44AF, if assessee claims that profits and gains from the said retail business is less than the profits and gains deemed to be his income u/s.44AF (i.e. Less than 5% of the gross receipts from retail business with turnover not exceeding Rs.40.00 lacs). In other words, Profit and gains of such retail business shall be presumptively computed @ 5% of gross receipt or as the case may be, a sum higher than the aforesaid sum as may be declared by the assessee in his ROI. Otherwise, audit u/s.44AB is compulsory.
| Originally posted by :CA. ASHOK SHAH | ||
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Yes Ashok sir is right
Naina
(CA Student)
(477 Points)
Replied 05 February 2009
Sir,
So is it right that a retailer cannot show net profit below 5% of its gross receipts, without getting the books audited, even if gross receipts is well below Rs. 40 lakhs.
CAclubindia
