Kumar Thakkar (44 Points)
23 July 2023My 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
Dhirajlal Rambhia
(SEO Sai Gr. Hosp.)
(195285 Points)
Replied 23 July 2023
Last year under which section audit was done?
Dhirajlal Rambhia
(SEO Sai Gr. Hosp.)
(195285 Points)
Replied 23 July 2023
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.
Dhirajlal Rambhia
(SEO Sai Gr. Hosp.)
(195285 Points)
Replied 23 July 2023
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.
Kumar Thakkar
(44 Points)
Replied 23 July 2023
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?
Dhirajlal Rambhia
(SEO Sai Gr. Hosp.)
(195285 Points)
Replied 23 July 2023
No, unless you were audited u/s.44AB(e) IT act, in any preceding five years.
Adhiti Mehta
(ACCA student )
(44 Points)
Replied 09 July 2024
I am attempting ACCA P6 which is advanced taxation. I am learning how to do tax audit and different types of taxes.
CAclubindia
