Tax audit applicable or not

Sourav

Achieving d UnAchieved

991 Points Posted on 20 November 2013

If the jeweller is only providing service, he is a service provider and not a trader. So how can he have a sales turnover ?

LALIT KUMAR GANERIWAL

accountant

241 Points Posted on 20 November 2013

B COZ HE BUY AT MKT RATE &SALE ALSO AT MKT. RATE THEN HOW HE EARN 8% ON TURNOVER?

Nikhil Kaushik

Fellow CA

86881 Points Posted on 20 November 2013

Dear lalit, To answer your question. Yes, in order to claim profit less than 8% the jeweler has to go for a tax audit

karthik

articled assistant

245 Points Posted on 21 November 2013

yup,agree with nikhik kaushik

NEHA PODDAR

NEHA MUZAFFARPUR

23 Points Posted on 21 November 2013

Tax audit applicable

Vidya Totad

student

52 Points Posted on 21 November 2013

If you don't mind can i ask you one question. is there no benefit for purchase and sale of jewellery ? Then what is the return for turn over

LALIT KUMAR GANERIWAL

accountant

241 Points Posted on 21 November 2013

vidya ji the profit on sale of gold depend upon mkt. rates

Akshay

CA in Practice

21 Points Posted on 21 November 2013

Audit depends on how we treat income portion..if the marketing of 50000/- exp give receipt of 85000/- which earns a profit of 35000/- ...means no audit required.

sathianarayanan.t

chartered accountant

267 Points Posted on 22 November 2013

No need for tax audit. If your client is an individual, Sec 44AD is not applicable if your taxable income is below the exempted limit. Hence 8% of income is not applicable here because the income in the given case is Rs. 35000 only. So, let me know the status of the the assessee