Tax audit

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If any business(other than contractors) having profit less than 8%, is applicable for tax audit......??

Any explanations??

Replies (7)

As per Sec 44 AB , you have to maintain book of Accounts if your Gross Turnover is more than 1 Crores . And 44 AD says that if books of accounts are not maintained , less than Rs.1 Crores , then 8 % is to be disclosed . So a combined reading implies that if less than 8 % profit is shown , than the books of accounts have to maintained .

As per Section 44AB, It is obligatory for a person carrying on business or profession to get his accounts audited before the “specified date” by a Chartered Accountant, where the assessee is covered under section 44AD, and he claims that the profits and gains from business are lower than the profits and gains computed on a presumptive basis and his income exceeds the basic exemption limit.

YES

IF U DISCLOSE LOWER THAN THE 8% OF THE INCOME AS PROFIT IT IS COMPULSORY FOR U TO MAINTAIN THE BOOKS OF ACCOUNT U/S 44AA & TO GET THE BOOKS OF ACCOUNT AUDITED BY THE CA.

If a partnership business(dealing in food items) having turnover less than 1 crore, and profit margin margin is less than 8%. Are they applicable for tax audit??

under which section??

In the same section 44AB,

Ok yogesh thanks .....:-)

tax audit is compulsory if you show profit less than 8 %, but that partiular tax audit will not be counted for the limit of total no. of audits for chartered accountants. thanks


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