IF A JEWELLERS HAVE 10,00,000.00 SALES & MAKEING CHARGES 50,000.00 THERE PROFIT IS 35000.00
HE IS REQUIRE TAX AUDIT ? NOTE THAT INCOME DEPEND UPON ONLY MAKEING CHARGE NOT ON TURNOVER
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Tax audit applicable or not
Replies (9)
If the jeweller is only providing service, he is a service provider and not a trader. So how can he have a sales turnover ?
B COZ HE BUY AT MKT RATE &SALE ALSO AT MKT. RATE THEN HOW HE EARN 8% ON TURNOVER?
Dear lalit,
To answer your question. Yes, in order to claim profit less than 8% the jeweler has to go for a tax audit
yup,agree with nikhik kaushik
Tax audit applicable
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
vidya ji the profit on sale of gold depend upon mkt. rates
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.
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
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