tax audit applicability

06 October 2018

a company has a turnover of 70 lacs and profit below 8 ℅. whether tax audit is Applicable

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Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (193978 Points)
Replied 06 October 2018

If Business transactions do not cross 1 cr. Audit u/Sec. 44AB not applicable.

So, No........

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CA Rakesh Joshi (Chartered Accountant ) (1272 Points)
Replied 06 October 2018

As every company has to maintain books of accounts u/s 44AA of the Income Tax Act, 1961, it can substantiate profit below 8% and declare the same.

Since the turnover of the business is less than 1 Crore i.e. 70 Lakhs, the provison of Section 44AB is not attracted in this case.

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