Tax audit needed?

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My total sales is 50.5 lacs for business and gross profit is 13% 

And I'm in GST presumptive scheme so should I need to do audit?

My tax consultant saying above 50 lac sales you need audit

and last year for 63 lac sales and net profit of 6.2% he done audit!

 

So please guide me what to do in this case

Replies (10)

Last year under which section audit was done?

Every GST registered taxable person whose turnover during a financial year exceeds the prescribed limit is subject to audit. As per the current notified GST Rules, the turnover limit is above Rs 2 crores. Such businesses must get their books of accounts audited by a chartered accountant or a cost accountant.

Last year audit basis on which section I don't know

Ok ,  so audit is not necessary in my case right?

Under GST act, no audit applicable,

Under IT act it is not envisaged as profit margin is 13%, but still it needs to be verified with last year's audit if any.

Okay thank you sir ji.

One more query : incase the turnover is under 1 cr but the net profit is less than 8% so should I liable for audit?

 

 

No, unless you were audited u/s.44AB(e) IT act, in any preceding five years.

Ok Thank you so much sir ji🙏

You are welcome.              

I am attempting ACCA P6 which is advanced taxation. I am learning how to do tax audit and different types of taxes.

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