CA Vibhash Kumar Sah
(Associate Manager)
(700 Points)
Replied 25 July 2011
| Originally posted by : Shafaf | ||
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Only 1 lacs CA in practice in india so they can only sign 45 lacs Audit only ,How can we manage this????? |
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Well.... thats not an issue at all. Audit has to be done and CAs are available in all cities to cater their profession requirement entrusted to them by the Constitution of india.
Vivek Gaur
(CA Final)
(346 Points)
Replied 25 July 2011
dear SHAFAF
your client is required to audit his books of accounts.......bcoz he's showing his income less than 8% which contravenes Sec 44AD. Moreover if he tax on his total income @ 8% he's not liable to maintain his book of accounts & audit it ..
I wanted to add one thing more.
Section 44AD is in income tax to stop tax evasion by small businessman.
So if a businessman shows less than 8% it means he might be trying to evade tax. Therefore Govt. is asking for audit and then make a claim that his profit is less than 8%. Otherwise show a profit of atleast 8% no question asked.
Thanks
Kaushal
CA Mukul Mittal
(CA in practice)
(384 Points)
Replied 26 July 2011
well, the assessee is liable to get the accounts audited only if his total income exceeds the maximum amount not chargeable to tax.............it is not clear in ur case..........pls give the correct details.....
CAclubindia
