Tax audit

My clients turnover for the FY 2017-2018 is Rs. 95Lacs that is less than one crore. So whether tax audit is compulsory for him? he s maintaining proper books of accounts. if tax audit is not compulsory whether we need to show profit more than 8%? pls help

 

 

Replies (10)

Tax audit is not compulsory in your case.

it means u opt for presumtive taxation. Profit at the rate 8% should be shown

I assume it is including GST. In yr case if turnover including GST, not more than 1 crore, simply offer adjusted profit more than 8%, else Audit is required u/s 44AB(e).
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Turnover will be excluding GST.

Kindly refer SC ruling in cae of "Chaurangi sales beauro".

Thanks for the update. It is covered under sec 145A of Income Tax Act

First of all, your are not liable for Tax audit since your turnover is less than rupees 1 Crore(Rs.50 lakhs for Professionals). if your client is an individual or HUF or Firm(other than LLP) and opted for Presumptive Taxation u/s 44AD you need to show at least 8% of total turnover as Business Income (if transactions made through other than cash it is 6%).If not opted for Presumptive Taxation No need to maintain these Percentage as profit... Presumptive Taxation U/s 44AD is available upto 2 crores turnover.. so even if your client having turnover of more than 1 Crore but opted for Presumptive Taxation no need to get Tax Audit U/s 44AB and no need to maintain Books of accounts. it is the Special exemption available for Sec 44AD..
if any indvidual had previous year tax audit but now he has not exceeding 1 Crore Rs but his net profit % is 3.90% so what to do to skip tax audit for this year?
to skip tax audit, offer profit equal to or more than 8%

So showing 8% of profit is compulsory even if the turnover is less than one crore?

If turnover less than one crore and profit less than 8% whether tax audit is compulsoy?

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