Tax audit needed?

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)
Quick Summary
This discussion clarifies tax audit requirements under GST and the Income Tax Act. For GST, the turnover limit for mandatory audits is currently above Rs 2 crores. Under the Income Tax Act, an audit is generally not required for a 13% profit margin unless specific conditions from previous years apply. The conversation also touches upon presumptive schemes and profit margins below 8%.

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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