RAKESH SIKHWAL (GST PRACTITIONER) (31 Points)
07 September 2018Dear CCI Members,
Please resolve my query with regards to Tax Audit Limit
As we are doing audit of Parties which have Profit less than 8% having turnover less than 1 cr.
And parties having turnover between 1 cr.to 2 cr. and showing profit Less Than 8% than both of this audits will we counted under limit of 60 parties audit under 44AB limit or 44AD.
Thanks & Regards
Sanket
(!..Live to Give..!)
(16427 Points)
Replied 07 September 2018
Section 44AB of the Income-tax Act (‘the Act’) makes it obligatory for every person carrying on business to get his accounts of any previous year audited if his total sales, turnover or gross receipts exceed one crore rupees.
However, if an eligible person opts for presumptive taxation scheme as per section 44AD(1) of the Act, he shall not be required to get his accounts audited if the total turnover or gross receipts of the relevant previous year does not exceed two crore rupees.
The higher threshold for non-audit of accounts has been given only to assessees opting for presumptive taxation scheme under section 44AD
Rohit Tibrewal
(Student & Senior Accountant)
(3193 Points)
Replied 08 September 2018
CAclubindia
